British Land lifted by Mitsubishi move

Japanese financial group Mitsubishi today agreed to relocate two subsidiaries in the City of London in the biggest deal for the commercial property market this year.

Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Securities International signed a cut-price deal with landlord British Land to let nine floors of the new 20-storey Ropemaker development close to Moorgate and Liverpool Street.

The Japanese firm agreed to an initial rent of £46.50 per square foot on a 20.5-year lease, with the first 48 months rent free. The price rises to a minimum £52.50 per square foot at the first review in 2014.

The building is due to be completed this summer and the deal, for 38% of available space, represented the first for British Land on the site but the knockdown price highlighted the crisis in the commercial property market.

British Land chief executive Chris Grigg said: "The agreement is very welcome progress."

The banks are currently at Finsbury Circus and Broadgate.