Sullivan & Cromwell is on the hunt for a bigger London office

Sullivan & Cromwell is looking for new London office space of up to 160,000 square feet as its private capital-focused buildout continues.

The US firm has occupied 1-9 New Fetter Lane since its London launch in 1972 where it currently has 75,000-square foot, but is looking to more than double the size of its London premises, according to real estate industry publication CoStar.

The firm has appointed commercial real estate agent Newmark to head the search, which follows a closely-watched period of rapid expansion in London, its second-largest office globally.

S&C did not respond to a request for comment.

S&C’s London expansion

Sullivan & Cromwell has traditionally taken a conservative approach to lateral hiring in London. That changed last year as the Wall Street firm embarked on a significant expansion of its London private capital offering.

The firm has added a wave of senior hires from rivals including Kirkland & Ellis, Weil and Paul Hastings across private equity, restructuring, finance and tax. The buildout has taken S&C's London partnership to around 26 partners as the firm continues to strengthen its position in the European private capital market.

Early signs point to the investment paying off. S&C recently won its first instruction from Inflexion, advising the sponsor on the financing for its acquisition of Finnish fire protection group Marioff, in a deal reportedly valued at more than $500 million.

US firms pay top dollar for City space

S&C’s quest for better premises also comes at a time when competition for prime floor space in London is hot among top law firms.

Supply of high-spec offices is relatively low while Big Law’s requirements for luxury and sustainability remain high.

The best buildings cost around £90 per square foot annually, with some rents in the City Core reaching up to £150 per square foot - last year, US firm Proskauer signed a lease at 8 Bishopsgate for a reported £147 per square foot.