Nomura to Cause a £224m Insurance Payout

Nomura, a leading Japanese investment bank, currently taking over 300,000 square feet of space at Canary Wharf are considering moving operations to the city. If the move, which is being advised by property agent, Drivers Jones, goes ahead; the group is likely to take space at the Watermark Place development, a new development on the river in the heart of the city.

The move is set to action an insurance clause that pays £224million to the estate of Canary Wharf to cover losses of business rent from Nomura. Nomura occupied Canary Wharf after taking European Assets from the failed American investment bank, Lehman Brothers.

Over 4,000 staff will be involved in the move which Nomura believes will bring it closer to clients. Canary Wharfs rental income, which is in excess of £50 per squre foot is protected by an AIG policy covering rental defaults by the original policyholder, Lehman. Ailing insurer AIG is not damaged any further by the revelation as the loss was identified over 6 months ago.

Canary Wharf can be selective over a new tenant as the policy covers 5 years worth of default payments, the original term of rental.