If Nomura bank leaves the building, AIG could pay £224m bill
AIG will have to pay as much as £224m in rent insurance to Canary Wharf if investment bank Nomura quits the building, the Telegraph reports.
Nomura is occupying 350,000 sq ft at the former Lehman Brothers' headquarters but in negotiations to move to the new 525,000 sq ft Watermark Place development in the City after agreeing terms last Friday.
The Telegraph claims 25 Bank Street is protected as part of a securitisation agreement with AIG, which underwrote the contracted rent for four years in the event of a payment default by Lehman.
The £224m was ringfenced in December and is not exposed to further turmoil in the financial sector.
The insurance cover means Canary Wharf has more than five years to find a replacement tenant.
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