Societe Generale is considering selling its London headquarters this year after the bank agreed to lease new offices in the Canary Wharf financial district, according to three people familiar with the matter.
Bloomberg News reports that the bank’s office building in the Tower Hill district in the City of London and an adjoining parking lot are valued at about $141m, the people said, asking not to be identified because the matter is private. Broker Savills has been appointed to advise the bank on its options, the people said. Savills and Societe Generale declined to comment.
A lack of office construction in the City of London after the financial crisis has resulted in the vacancy rate falling to its lowest in 14 years as companies compete for space. That’s prompting some occupiers to move east to the cheaper Canary Wharf district. Societe Generale will lease 280,000 square feet (26,000 square meters) of office space in a new building being constructed by Canary Wharf that’s due for completion in 2019.
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