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The
purchase of the building at 33 Central, King William Street --
close to the Bank of England and the River Thames -- will allow
Wells Fargo to consolidate all of its London-based staff in a
single location when construction completes in the third quarter
of 2017.
Financial terms of the transaction, which shows confidence in
London remaining a global financial centre following the Brexit
vote on June 23, were undisclosed but a source close to the deal
said the price was around 300 million pounds ($400 million).
"With this new building in London, we are able to bring our team
members together in one location in order to more efficiently
and effectively manage our operations," Frank Pizzo, Wells Fargo
regional president for Europe Middle East & Africa said in a
statement.
Wells Fargo has 850 London-based staff.
Property company HB Reavis originally hoped to retain and lease
the development but later agreed to sell the shares in the
subsidiary which owns 33 Central to Wells Fargo after initial
leasing discussions.
Senior executives at the U.S. bank, one of the world's biggest
by assets, have publicly stated its ambitions to grow
organically outside its domestic U.S. market, where it drives
more than 90 percent of its revenues.
"Many have doubted what will happen to the real estate market
after the Brexit vote," said Marian Herman, Chief Financial
Officer of HB Reavis Group, describing the deal as a strong
endorsement of its business model and the resilience of the
market.
Knight Frank and Gerald Eve were agents for the 227,000 square
foot office development at 33 Central, and CBRE advised Wells
Fargo.
(Reporting By Sinead Cruise; Editing by Keith Weir)
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