News and information group Reuters is to quit its historic Fleet Street headquarters and move the majority of London staff to a single building in Canary Wharf, releasing £32.3 million in estate capital and saving £5 million per year in property costs.
Subject to formal contract, Reuters has agreed terms with Canary Wharf Group Plc for the entire building at 30, The South Colonnade, Canary Wharf. The building contains approximately 281,000 square ft. of space.
The troubled developer has agreed to buy Reuters' HQ and adjoining building and take over the leases on three City properties currently occupied by the news and information group in a bumper £57 million incentives package.
Reuters London staff is currently located in ten properties across the capital. The relocation programme has been initiated under the company's Fast Forward cost reduction programme.
With the exception of two existing London technical centres and a small City office, all London staff will be accommodated in the new site with the move planned for spring 2005. The small central City office will be maintained to hold some editorial and sales staff, with 'hotdesk' facilities for other staff that need to be in the City.
Tom Glocer, Reuters CEO, says: "This follows a similar move in the US in 2001 to one key site in Times Square for our New York employees, which had a tremendously positive impact on both staff and clients that we want to replicate in London."
Reuters has occupied its current HQ at 85 Fleet Street since 1939. Under the Canary Wharf deal, the company expects to see £32.3 million capital released from the sale of the Listed Lutyens building and adjoining property.