IWG in talks to open City members’ club

IWG is in advanced discussions to open a second London business club in the City through its No18 members’ club brand. The company is in talks to lease the entire office space at 20 Finsbury Circus, EC2, having placed around 85,000 sq ft under offer. Quoted rents at 20 Finsbury Circus are around £60 per sq ft. The news comes after No18 snapped up the remaining office space at Battersea Power Station this summer for its first London branch. Since becoming part of IWG, Sweden-based No18 has also added bases in the US and Switzerland. An IWG spokesperson said: “No18 is a members’ club designed for businesses and individuals that provides a high-end and unique environment for both work and leisure. As we roll out No18, we are considering a number of sites in city locations. Alongside our locations in Stockholm, we have already agreed new venues in Atlanta, Zurich and Battersea.” Japanese real estate developer NTT Urban Development Corporation owns 20 Finsbury Circus. NTT acquired the eight-storey building through its UK subsidiary, UD Europe, in 2012 for £42.9m from the City of London Corporation. At the time, it was leased in its entirety to Deutsche Bank. The bank is thought to have vacated the building last year, before the owner began refurbishing the whole building in early 2018. It is understood that refurbishment is still under way and the proposals include a new retail offering. NTT is a subsidiary of Japanese telecoms company Nippon Telegraph & Telephone Corporation. Shifting strategy IWG has been ramping up its co-working offering in a bid to fight off competition from rival WeWork. At the same time, it is also considering selling off some of its property portfolio, following aborted takeover talks with Starwood, Terra Firma and TDR. No18 will open “The Engine Room” in the Power Station building, offering co-working space, offices and meeting rooms alongside an events venue. The luxury members’ club brand, acquired by IWG in 2017, provides boutique lounges and meeting rooms for businesses. Having leased the remaining 40,000 sq ft of office space at the Power Station, No 18 will join fellow tenant Apple in the iconic building, which is due to open in 2021. IWG’s co-working offering also includes Spaces, acquired in 2013, which is a more contemporary brand aimed at the creative, digital and technology sectors. With No18, IWG says it is aiming for businesses seeking a high-end, luxury boutique environment. NTT was approached for comment. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette