According to Crain's, the bank would move from 399 Park Avenue in
New York City, where it has been based for decades, to Greenwich
Street, where Citigroup signed a more than $1 billion deal to renew
its lease plus gut and renovate a twin-building complex that it
already occupies at 388 and 390 Greenwich Street.
The deal is a major victory for landlord SL Green <SLG.N>, which had
competed for months to hold onto Citi as a tenant. Combined, 388 and
390 Greenwich Street is the largest single property that SL Green
owns, Crain's said.
SL Green confirmed the lease extension in a press release, while
Citigroup declined to comment.
As per the agreement, Citi has the option to extend its 2.7
million-square-foot lease by at least 15 years at the two properties
when it expires in 2020 or exercise a right to acquire the buildings
for around $2 billion, Crain's reported.
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Citi is expected to undertake a makeover of the interior spaces and
possibly a remake of the exterior with a new skin of glass of the
two properties, which were built in the 1990s, Crain's said.
Citi was represented in the deal by a leasing team from CBRE Group
Inc and by a legal team from the law firm Fried Frank.
(Reporting by Varun Aggarwal in
Bangalore; editing by Bob Burgdorfer)
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