Login

Japanese Insurer Completes Letting to Take M&G's 40 Leadenhall City Tower Near to Full Occupancy

Sompo Has Signed for 75,920 Square Feet at 'Gotham City' Development
40 Leadenhall is the largest development to complete in the City of London this year. (CoStar)
40 Leadenhall is the largest development to complete in the City of London this year. (CoStar)
CoStar News
July 22, 2024 | 1:41 P.M.

Sompo, the Japanese global insurer, has completed its letting of 75,920 square feet of offices at the 40 Leadenhall tower in the City, as M&G's 910,000-square-foot office development nears full occupancy.

CoStar News revealed the talks in March for the space at the building dubbed Gotham City in part because its architects took "mid-century New York" as the template for its design.

Sompo has taken the space on the fifth and sixth floor and is relocating from 2 Minster Court which is also owned by M&G.

CoStar News revealed in March that M&G was in talks to lease almost all of the remaining circa 150,000 square feet at the tower, finalising a highly successful leasing campaign during a period when there has been much debate over the future of offices.

40 Leadenhall is a 910,000-square-foot office tower designed to be among the UK’s first to achieve the NABERS certification – an energy efficient standard that measures how a building is designed to operate and how it performs in use. It will also be the largest office development to complete in the City of London this year.

It includes a fitness studio, a 22,500-square-foot treatment and changing area, a wellness suite, library and a 30-seat cinema room. Employees will be able to use touchless technology to book spaces at the 200-seat auditorium, two restaurants, 17 outdoor green spaces and terraces and the communal 11th floor rooftop clubhouse.

The tower, alongside nearby recently developed peer 8 Bishopsgate, has leased up strongly despite market jitters around the strength of the office market since the COVID-19 pandemic began. Recent progress on major lettings in the City suggest a trend for major corporates to relocate to highly sustainable new buildings.

M&G Prudential bought the site in 2019 from AimCo and Nuveen Real Estate, through its central London offices platform.

Knight Frank, Cushman & Wakefield and Savills are joint agents.

CoStar News revealed in September that US law firm Kirkland & Ellis had taken up its option on another 170,000 square feet to complete one of the largest legal prelets in the capital.

The letting means the firm will occupy a total of 412,000 square feet stretching from the top 34th floor to the 15th floor.

CoStar News tipped the transaction would complete alongside a flurry of other lettings to take the building to 70%-plus preleased in August.

Other lettings include: 50,827 square feet, to Acrisure, advised by Newton Perkins, on a 20-year lease; Ark Insurance, the reinsurer based at 30 Fenchurch Avenue, which has taken 22,500 square feet; Shawbrook Bank, a challenger savings and lending bank, which has taken 37,000 square feet on level 10, advised by JLL; McGill & Partners, the reinsurance broker based at 100 Leadenhall Street, which has taken 43,000 square feet on a 16-year lease.

IN THIS ARTICLE