Login

London's Canary Wharf Lands Expanding Life Sciences Group as Estate Moves Ahead

Docklands Estate Diversifies in Number of Areas After High-Profile Departures
CoStar News
September 12, 2023 | 11:37 AM

Canary Wharf Group has signed HVIVO, a scientific, and technical services group specialising in human challenge trials, for 39,049 square feet of offices in further evidence of how the Docklands estate is reshaping its occupier base.

HVIVO is taking the 24th and 25th floors on a 10-year lease at 40 Bank Street, a 634,000-square-foot tower.

The group says it is in expansion mode as it establishes a cutting-edge facility at the Canary Wharf 'Life Sciences Hub'.

It says the expansion, primarily funded by its clients, will feature state-of-the-art amenities, including quarantine rooms, laboratories, outpatient facilities, and corporate offices all under one roof. The site will initially have 50 quarantine beds, with plans to expand to 70, significantly above its Whitechapel and Queen Mary facilities, which can accommodate 43.

Canary Wharf last year plugged Citibank into a further 94,174 square feet at the 40 Bank Street tower, The US bank took floors five, six, seven, nine and 10.

Citibank signed for Canary Wharf's new fully fitted and managed office space platform MadeFor. Citi became the first customer in the space in March of 2022 when it signed for a first 94,000 square feet in the space on floors eight, 12, 13, 14 and 15.

Citi is decamping to 40 Bank Street while Citi Tower, its UK and EMEA headquarters, at 25 Canada Square on the Canary Wharf estate, undergoes a £100 million refurbishment.

MadeFor is being made available across Canary Wharf’s portfolio including One Canada Square, Forty Bank Street, 20 Water Street and The Columbus Building.

It forms part of the strategy of the developer, owned by Canada's Brookfield Corporation and the Qatari Investment Authority, as it reshapes its tenant base as large financial corporates have made high profile exits.

The recent decisions by HSBC and Clifford Chance to relocate from major long-term homes at Canary Wharf and move to the City has prompted debate about its future.

According to CoStar's data, at 15.5%, Docklands has one of the highest vacancy rates in London, following more than 1 million square feet of demand losses since the pandemic struck.

That is above the central London average of 9.1% – vacancy rates are as low as 3% in some parts of the West End – and could rise further in the near term as a couple of large buildings complete construction in an environment of subdued demand.

The estate is diversifying in response. Tech giant Apple leased a large space there during the pandemic, while Genomics England and Kadans have both signed significant lettings over the past year as the Canary Wharf Group positions Docklands as a life sciences hub.

JLL and CBRE advise Canary Wharf Group.

IN THIS ARTICLE