Deutsche Bank has committed to moving to a new office in London, at a time when banks are assessing their place in the capital ahead of Brexit.
Germany’s biggest lender is in exclusive talks for a 25-year lease on a new building. Garth Ritchie, UK chief executive of Deutsche, told staff the move “underlines the bank’s commitment to the City of London”. He said staff would start moving to the new UK headquarters in 2023.
The deal showed “the importance it attaches to being an employer of choice in the capital”, Mr Ritchie said. Deutsche Bank employs about 7,000 people in London, who are currently scattered across 15 different buildings. It is in negotiations with developer Land Securities over the lease on a new building to be constructed at 21 Moorfields.
Brexit contingency plans
As Prime Minister Theresa May prepares to trigger Brexit talks on 29 March, some financial firms have stepped up plans on how to deal with any disruption. This week, a senior Goldman Sachs executive said it would move jobs away from London and bulk up its European presence by “hundreds of people” as part of Brexit contingency plans. The US bank, which is also in the process of building a new office in London, is planning to bolster some European offices before the UK leaves the EU. Also this week, Deutsche Bank started a share sale to raise about 8bn euros (£6.9bn, $8.5bn) to bolster its finances. On Tuesday, it was revealed that the bank had cut its bonuses by more than three-quarters last year, to 0.5bn euros (£433m) from 2.4bn euros a year earlier.
The city’s work within the Northern Powerhouse initiative has also given it kudos on an international level.
Manchester has been named as one of Europe’s top influential city. Thanks to a combination of factors including top scores for talent, location, the cost of living, Manchester ranked third in Colliers International Cities of Influence TLC index. The city’s work within the Northern Powerhouse initiative has also given it kudos on an international level.
London and Paris hold the top two spots, primarily because of their size, while Stockholm and Dublin feature fourth and fifth place, respectively, while the bottom ranking markets features Milan, Budapest and Brussels. Andrew McFarlane, director and head of the Manchester office of Colliers International, said: “Manchester has worked hard to build its reputation as an international city. “Over the past 20-plus years it has steadily grown and developed into the global player that it is today and that momentum is still building as Manchester cements its place at the heart of the Northern Powerhouse. “What is encouraging about this report is that what has been clear to many in Manchester for several years is increasingly being recognised by a global audience. Manchester’s best days lie ahead.”
The report’s ‘TLC’ index features 20 major individual economic cities which are ranked in terms of talent, location and cost. These factors have been categorised based on the size and orientation of economic output and the workforce; the capacity and skill-set of the latent and emerging talent pool; the cost and affordability of the city – as a place to live and save, and in terms of the cost of labour and total cost of office occupation; and finally, the country risk associated with the market, and the inherent risk/challenges presented by labour laws. Damian Harrington, director head of EMEA Research at Colliers International, added: “Some occupiers will be more focused or interested in one component over another and thus the overall weightings and scores could change according to these preferences. “For example, occupiers driven by cost may see the southern European and CEE markets as more attractive than their northern and western European counterparts. Alternatively, occupiers focused on a digitally sophisticated workforce will be more tempted by Stockholm and Prague than Barcelona or Brussels.”