Deutsche Bank is reportedly buying a building in London's Stratford district for Financial Conduct Authority.
According to Bloomberg, Deutsche Bank AG's asset management has decided to buy the 19-story property that is currently in development in London's Stratford district. The building will house the Financial Conduct Authority. The speculated price is said to be more than £370 million or $537 million.
"Buying this building is a great opportunity to invest in one of London's emerging markets at an early stage and has great potential for strong growth as occupiers are attracted by the diversity and vibrancy of the area," Bloomberg quotes what Deutsche Bank's head of real estate for the U.K. and Ireland James Petit said in the email.
The FCA will move to the building once completed in 2018. According to Bloomberg, the FCA will regulate financial markets in the U.K.
In previous report, it was mentioned that investors are checking out of U.K., cashing in on investments as property prices soar. Amidst the fears that the London market might crash, GIC has decided to put more investment in the nation. Now, Deutsche Bank is making an investment while many sources say that companies are moving out of central London because of office space shortage and rent increase.
With respect to rent rates, average rents in Stratford are around £30 to £40 per square foot of office space while it is more or less £65 for the same type of space in the financial district in the City of London financial district as estimated by head of European commercial research.
Deutsche Bank is a German global banking and financial institution with its headquarters in Frankfurt, Germany. Also stated in the email, according to Bloomberg, is that the U.K. real estate arm of Deutsche Bank has €5.4 billion worth of assets under management as of Sept. 30, 2015.