A&O settles the terms on prestigious Spitalfields HQ

Office Moves: City giant plans relocation to Tower Hamlets

City giant Allen & Overy is one step closer to swapping its view of St Paul's with new offices in east London's Spitalfields after it agreed terms with the developers this week.

The firm is now set to move 3,000 staff from Exchange House near the cathedral into the 750 million Bishops Square office in three years' time - if the project gets the green light from planning authorities.

The law firm has agreed to pay joint developers the Corporation of London and Spitalfields Development Limited, a subsidiary of developers Hammerson, a rent of 45 per sq ft, but A&O will enjoy a rent-free period of 18 months.

It is hoped that work on the scheme will begin in autumn, after a modified bid was put to Tower Hamlets Council, when the local community objected to original plans.

Andrew Clark, partner in charge of the project, said it was an exciting opportunity.'We are delighted that our search for a new home has resulted in a prestigious building and scheme, which will serve our needs into the next decade and beyond,' he added.The announcement follows last week's move by 30 of A&O's finance lawyers to the Citigroup Centre in Canary Wharf.

The firm is also set to stage a larger-scale shift of 250 staff to a Docklands office in around 18 months' time.

Meanwhile, London firm Farrer & Co has sold a 7,500 sq ft Lincoln's Inn Fields office to a private investor for a reported 3.25 million.

Paula Rohan