Barclays Buys £750M Headquarters At Canary Wharf

Barclays has cemented its long-term future at Canary Wharf with a £750M deal to secure control of its global headquarters, the latest sign that London's Docklands office market continues to gain momentum.

The bank has acquired a long-term leasehold interest in One Churchill Place from Canary Wharf Group in a transaction valued at £750M, giving Barclays control of the building for up to 999 years and extending far beyond its existing lease, which had been due to expire in 2039.

The deal covers more than 1M SF of office space that has served as Barclays' global headquarters since 2005.

The acquisition gives Barclays ownership certainty at a time when many major occupiers are reassessing their long-term office strategies, while also providing Canary Wharf Group with a timely vote of confidence in a district that has spent the past three years rebuilding momentum following the departure of several high-profile occupiers.

"This acquisition gives us long-term certainty, greater flexibility over our London footprint and reinforces our continued confidence in London as one of the world's leading global financial centres," Barclays Group Chief Executive C.S. Venkatakrishnan said in a statement.

Barclays added that it wants to create increasingly flexible, high-quality workspace as working patterns continue to change.

"Barclays' decision … underlines the long-term confidence that leading businesses continue to place in the district as a location where they can invest, grow and bring people together," Canary Wharf Group CEO Shobi Khan added.

CWG has managed to secure a number of deals over the past year. Payments giant Visa signed one of the largest office lettings in the capital, agreeing to take more than 300K SF at One Canada Square on a 15-year lease as it relocates its European headquarters from Paddington in 2028. The deal was one of the biggest office transactions completed anywhere in London during the period and helped Canary Wharf achieve its strongest leasing performance in more than a decade. 

In January, University College London's School of Management expanded its presence at One Canada Square to about 150K SF, adding two floors to accommodate growing undergraduate and postgraduate programmes focused on technology, innovation and entrepreneurship. 

Last year, Spanish banking group BBVA expanded its space to 60K SF, while fintech lender Zopa committed to a new 44K SF headquarters at 20 Water Street. 

Meanwhile, JPMorgan continues progressing plans for its proposed 3M SF headquarters tower at Canary Wharf, which would become the estate's tallest building and house up to 12,000 employees. It concluded a flight restriction agreement with London City Airport in April.