Sunday, November 19, 2023

Lloyd's of London deal remain iconic HQ


Lloyd's of London strikes deal to remain in iconic HQ

The insurance marketplace will remain at One Lime Street until 2041 under a deal with Ping An that could be announced as soon as next week, Sky News can reveal.

Image:The Lloyd's of London HQ
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Lloyd's of London is on the brink of a long-term deal to remain in its landmark City headquarters until the 2040s after more than a year of negotiations with its Chinese landlord.

Sky News has learnt that the world's most prominent insurance industry marketplace could announce as early as this month that it has reached agreement with Ping An to remain in its One Lime Street home until 2041.

Property industry sources said on Wednesday that Lloyd's and Ping An, the Chinese insurer, had agreed as part of the deal to remove a break clause in the lease in 2026.

The existing agreement, which was due to expire in 2031, will be replaced with a new one under which annual rent increases will range from 3% to 5%, the real estate sources added.

Ping An will also agree to invest £20m in upgrading the building's energy efficiency in an attempt to improve its carbon footprint, they said.

Lloyd's continued occupancy of the building had been thrown into doubt last year amid its management team's deliberations about the impact of post-pandemic working practices on the marketplace.

City workers attend a Remembrance Day ceremony at Lloyd's of London, in the City of London, to mark Armistice Day, the anniversary of the end of the First World War. Picture date: Friday November 11, 2022.
Image:Lloyd's said last year it was thinking carefully about the future requirements for the spaces and services it needs

Designed by the renowned architect Richard Rogers, Lloyd's HQ is one of the world's most recognisable commercial buildings.

The tower has been owned by Ping An since 2013, which bought it from Germany's Commerzbank for £260m.

A Lloyd's spokesperson said: "We're building the marketplace of the future, which means having both a fully integrated digital offering and a thriving physical space for our market to convene. While our workplace strategy and future leasing arrangements remain under consideration, our preference is to stay in the building if the right terms are agreed.

"We remain on course to confirm our plans later this year."