A report in today’s Evening Standard suggests that Ping An, the Chinese owner of the landmark Lloyd’s Building, is seeking to remove its eponymous tenant by 2019.
City Spy cites unnamed sources who believe that Ping An, who paid £260m for the Lloyd’s Building little more than twelve months ago, is keen to redevelop the property to free-up an additional 40 per cent of rentable space.
The report continues to say that Lloyds of London has no desire to quit its headquarters but, should Ping An get its way, the insurer will consider relocating to the nearby ‘Scalpel’ development adjacent to the Willis Building.
If there is any truth in the rumours they contradict stories that emerged earlier in the summer suggesting that Lloyd’s was discussing a move to Henderson Global Investors’ ‘Gotham City’ development after becoming frustrated with maintenance costs at the Richard Rogers designed ‘inside out building.’
At the time the architect denied the stories, insisting that Lloyds had no intention of moving from his 1986 Grade I listed building, despite the reported comments of departing Chief Executive Richard Ward.
He was quoted as saying that it would be “absolutely daft” to rule out a move and that any sensible business would always look at the options.
“I can’t guarantee you’ll get to the ground floor in the lifts because they break down with some frequency,” he complained.
“That’s the fundamental problem with this building. Everything is exposed to the elements and that makes it very costly.”
The latest rumours add to the growing belief that Lloyds may not have a long-term future in the building that bears its name despite having a lease that runs until 2031.
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