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State Street has agreed to buy a City of London office block, clearing the way for the asset manager to leave its current Brookfield-owned offices in Canary Wharf and become the latest departure from the Docklands financial district.
Listed landlord Helical and private investor Orion Capital Managers announced the sale of 100 New Bridge Street to an undisclosed buyer for £333mn on Friday, who they said would occupy the building themselves.
Several people with knowledge of the matter confirmed that State Street was the buyer. Helical, Orion and State Street declined to comment.
A move by the US asset manager would make it the latest major tenant to retreat from the Docklands financial district for the City, with other high-profile departures including HSBC and law firm Clifford Chance. Deutsche Bank is also reviewing its presence in Canary Wharf.
Canary Wharf has suffered as employers have sought more central office locations, in a bid to lure staff back to in-person working after the pandemic.
HSBC will move to a building near St Paul’s, which is also being redeveloped by Orion, by 2027. Clifford Chance is planning to move ahead of its lease expiry in 2028, taking space from landlord Great Portland Estates at Aldermanbury Square in the City.
State Street’s lease at 20 Churchill Place, a Canary Wharf block that Brookfield acquired in 2021, expires in 2028. Brookfield also co-owns Canary Wharf Group (CWG), the landlord and manager of the wider estate, with the Qatar Investment Authority.
CWG has been trying to offset office departures by improving the estate’s appeal, with a broader range of occupiers, green space, retail, hotel and entertainment.
Vacancy rates in the Docklands core market around Canary Wharf reached a record high of 19 per cent in the first quarter, according to data firm CoStar.
However, traffic has not all been one way — fintechs Zopa and Revolut have recently taken new premises on the estate, while Barclays and Morgan Stanley have agreed to stay put.
State Street’s move was partly driven by a desire to own their building rather than renting, one of the people familiar with the deal said.
State Street’s departure would mark the latest hit to Brookfield’s London office portfolio. Law firm Simmons & Simmons last month said it would move by 2030, vacating its space at Brookfield’s Citypoint tower.
Brookfield has struggled in its efforts to sell Citypoint, and asked lenders for a series of extensions to debt against the building.
The deal at 100 New Bridge Street would represent one of the largest London office sales in several years, with investors remaining uncertain about pricing and future demand for offices following the Covid-19 pandemic.
Blackstone’s two bids to acquire the “Can of Ham” skyscraper at 70 St Mary Axe for more than £300mn were rebuffed by owner Nuveen, the asset management arm of US retirement provider TIAA.
Competition among tenants for the best quality building in prime London neighbourhoods has intensified due to a lack of new development since the pandemic, driving companies to pay higher rents and plan further ahead to secure premises.
The deal is expected to close in April 2026 when Helical and Orion complete a full refurbishment of the block.
