Aon Agrees to Lease Almost a Third of City of London’s Cheesegrater Tower - Bloomberg

Aon Agrees to Lease Almost a Third of City of London’s Cheesegrater Tower - Bloomberg

AON Corp (AON) agreed to become the first tenant in the Cheesegrater, a skyscraper in the City of London financial district that’s due to be completed in 2014.

Aon will occupy almost a third of the 47-story tower, according to a statement today from the developers, British Land Co. and Oxford Properties Group Inc. The property, officially known as the Leadenhall Building, will be the Chicago-based insurance broker’s U.K. base.

British Land revived the project in October after getting backing from Oxford Property’s owner, Toronto-based Ontario Municipal Employees Retirement System. Prices for London office buildings have recovered since August 2009 as the weak pound fueled demand from overseas investors and a shortage of large new offices lifted rents.

“This is good news for British Land, but doesn’t signal a jump in demand for central London offices,” said Alan Carter, an analyst at Evolution Securities Ltd. with an “add” rating on the stock.