Under the terms of the deal, Reuters will take 239,000 sf on a 15-year lease. The additional 44,000 sf will be taken on a separate lease with break options exercisable after five and 10 years. In return, Canary Wharf will take over three of Reuters' leasehold properties; the outstanding rents are the equivalent of 2.5 years' rent free at Canary Wharf.
And Canary Wharf will also acquire the freeholds of Reuters' current headquarters at 85 Fleet St. and the adjoining St. Brides House for £32.5 million ($60 million). It will lease the headquarters building back to at £1.6 million ($3 million) per annum until the move to Canary Wharf takes place in May 2005. Should Canary Wharf decide to sell the buildings, a profit sharing agreement with Reuters will share the profit achieved over and above acquisition and expense costs.
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