EBRD in City rent battle

THE marble palace in Broadgate that is the headquarters of the European Bank for Reconstruction and Development could cost European taxpayers a little more from next March.

British Land wants to increase the rent on the City building following a March 2001 review that gave it a rental of about £59 a square foot. A Christmas Day review is an unusual feature of the lease, but negotiations about it are likely to go on until March. British Land argues that rents in the City have increased since last March, but the EBRD says they have softened. The whole business is headed for arbitration.

Insiders say the 23 directors of the EBRD, set up to lead the regeneration of eastern Europe, are astonished at the high cost of property in the City, especially when they compare it with the cost in their domestic capitals. However, the EBRD, which is owned by its member nations, has a 10-year lease on the building and a move is unlikely.