Citigroup weighs up namesake tower exit
Sydney landmark the Citigroup Centre could lose its namesake tenant, with the investment bank weighing up a dramatic shift that could see it split its space between new towers in the central business district and North Sydney.
The US bulge bracket bank, which also has a substantial retail lending presence locally, is in talks that could see it shift top executives from its investment bank to a new tower being built at 60 Martin Place with other units heading to the under-construction Nine Media headquarters.
Other options on the table include AMP Capital’s Quay Quarter Tower and Lendlease’s Circular Quay Tower.
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Other suburban landlords are also chasing the requirement that is yet to be finalised.
Citi’s senior executives have long wanted to shift into the city’s financial core and one of the favourite to host the group’s requirement is Investa’s flagship city project, which is being developed by the Investa Commercial Property Fund and Gwynvill Group. Multinational lawyers Norton Rose Fulbright are already shifting from 44 Martin Place and Grosvenor Place to take 9527sqm in the tower.
The bulk of Citigroup’s operations may move to North Sydney, with the bank eyeing up to 10,000sqm of space in Winten’s 1 Denison project. But other nearby options may be pursued.
The 47-level premium grade Citigroup Centre, owned by Charter Hall Office Trust and GPT, is one of Sydney’s best known towers and any space there would be keenly sought.
Citibank has leased about 13,280sqm until mid-2024 and may sublease its space, or developers could take up some of the lease tail.
The investment bank says it “continues to evaluate its real-estate footprint to ensure it provides the best environment for its staff and clients”.
“No decisions have been made to move office from our current Sydney locations,” a Citi spokeswoman says.
This article originally appeared on www.theaustralian.com.au/property.
