CMS’s London office will be put on the market for a £510m sale following the firm’s three-way merger with Nabarro and Olswang, it has emerged.
The three firms will all initially move into CMS HQ at Cannon Place following the 1 May 2017 merger date, with lawyers and staff from Nabarro and Olswang occupying around two floors of vacant space in CMS’s building.
The merger group is understood to have cut a deal to occupy the 80,000 sq ft of currently unoccupied space.
It is understood that Cannon Place, which was initially marketed for sale last September, will then be relaunched onto the market later next year with a guide price of £510m, with Savills and CBRE retained as selling agents, according to information provider CoStar.
It is not yet known whether CMS Cameron McKenna Nabarro Olswang will opt to stay in the building following the sale or what its rental agreement will be under the new landlord.
Last month The Lawyer reported that all of the leasing deals on CMS’s Cannon Place premises had been put on hold while the three firms hashed out the terms of the merger.
The news was the first major indication that CMS was looking to absorb the two smaller firms.
CMS is currently paying £67.50 per sq ft for its Cannon Place offices. The Lawyer UK 200: Workspace Trends report revealed this is significantly less than Olswang, which is paying £82 per sq ft for its 182,000sq ft premises (much of it sublet). Nabarro currently controls 100,000 sq ft.
Olswang holds the lease on the whole of its 90 High Holborn headquarters, subletting 68,000sq ft of its 182,000sq ft premises, with 17,000sq ft still available to rent.
Olswang’s lease expires in 2022, while Nabarro’s expires in 2025.
Cannon Place has a broad tenant mix including CMS Cameron McKenna, the CBI, Franklin Templeton Investments, Columbia Threadneedle Investments and i2 Offices.
Yesterday CMS, Nabarro and Olswang partners agreed to the three-way merger, which is now set to go live on 1 May 2017.
The new firm will be called CMS Cameron McKenna Nabarro Olswang LLP, but the firm will trade as CMS.
This year’s The Lawyer’s UK 200: Workspace Trends 2016 report (produced in association with JLL) underlined the key position a firm’s property now plays in terms of strategy and future wellbeing in extensive detail.
To purchase the report contact Richard Edwards on 0207 970 4672 or at richard.edwards@centaurmedia.com
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