JP Morgan to pass on Wharf space

By John Hill on July 22, 2008 12:02 PM |

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JP MORGAN is hoping to pass on its office space in Canary Wharf - before the building is even complete.

The US bank picked up space in 5 Churchill Place when it snapped up stricken rival Bear Stearns in March.

Bear Stearns was due to move into 250,000 square foot of offices when the building completed in July next year, but JP Morgan has now assigned Knight Frank to offload the offices rather than occupy them itself.

Bear Stearns was due to take up 65 per cent of the 300,000 square foot building.

Representatives from JP Morgan itself would not comment on the plans, but it is understood a price of approximately £10.5million a year is being sought on the 20-year lease agreed with Canary Wharf Group in August 2006.

The financial giant snubbed Canary Wharf in May last year when it chose to site its London headquarters in the City, despite initial interest in taking a million square feet of space in the planned Riverside South development.

It is still progressing with plans to create its new home between London Wall and Fore Street. Canary Wharf Group's parent company Songbird has put speculative projects on hold in the wake of the credit crunch, which leaves Riverside South on the back-burner until a new tenant is found.

Other Wharf banks such as Lehman Brothers, Barclays and Citi are also looking to sub-let space in the estate. While some of the negotiations are reportedly due to the expiry of existing tenancy agreements, financial institutions in the area are also looking into ways of raising funds in the harsh economic climate.