Clifford Chance to quit City for Docklands

OFFICES: Clifford Chance becomes the first top City law firm to abandon the Square Mile

City giant Clifford Chance is set to become the first major law firm to abandon its Square Mile headquarters to move to Canary Wharf.It is understood that Canary Wharf offered favourable terms to the first major City law firm to move to its Docklands development.

Canary Wharf Group is a top-ten Clifford Chance client, with billings reaching 4.6 million last year.Mike Hussey, Canary Wharf's head of leasing, said: 'We have had a drive to attract law firms, as well as other professional firms.'Clifford Chance partners have voted to take 700,000 square feet of a 30-floor, one million sq ft tower being built next to the existing Canary Wharf tower, with an option on the remaining 300,000 sq ft at a time-limited rent discount.Clifford Chance rival Allen & Overy, which has to move out of its New Change offices in four years when its lease expires, has missed out on pioneering a Docklands move, but may now be in a position to take its rival's old building.

A spokesman confirmed that a number of options were under consideration.

Clifford Chance and Canary Wharf will jointly dispose of Clifford Chance's headquarters at 200 Aldersgate Street.City law firms have traditionally shunned Docklands, and Clifford Chance is hedging its bets by retaining an 'important transactional base' in the Square Mile.Canary Wharf's only law firm tenant to date is leading US firm Skadden Arps Slate Meagher & Flom, which has been there for three years.

Bruce Buck, the firm's London managing partner, said: 'The only surprise about a City firm moving here is that it hasn't happened before.' Clifford Chance's London managing partner, Peter Charlton, said: 'A number of our major clients are located at Canary Wharf, and more are likely to follow.'Clifford Chance client Citibank is set to move to the development following Citigroup's acquisition of 290,000 sq ft of office space.Last year, Clifford Chance billed Citigroup more than 10 million and Canary Wharf-based Morgan Stanley Dean Witter more than 8 million.

Canary Wharf's main legal advisers are Clifford Chance and Ashurst Morris Crisp.

It is understood that Ashursts is advising Canary Wharf on the move.

Freshfields is acting for Clifford Chance.

Anne Mizzi