Cadwalader trousers millions in New York grants

Cadwalader Wickersham & Taft has accepted a federal handout to remain in Lower Manhattan, despite earning millions of dollars in profits last year.

The firm is being given $5.3m (£3.2m), $1m (£603,000) over 15 years towards its energy costs and potentially $3.2m (£1.9m) if its adds 400 jobs over the next five years under the Job Creation and Retention Program.

The initiative is part of a scheme designed to encourage businesses to stay downtown following the events of 11 September.

Cadwalader, which in the last financial year reported profits per partner of $1.2m (£724,000) and $330m (£199m) in turnover, has taken a 20-year lease on 450,000sq ft of space at One World Financial Center.

It states that the cost of moving to the office will set it back $75m (£45.2m). However, the firm also stands to benefit from the sale of its current space at 100 Maiden Lane. According to reports, offloading the site could net the firm up to $75m, covering the costs of its move.
Cadwalader is not the only multimillion law firm that has enjoyed a donation – twelve firms, including Cahill Gordon & Reindel, Cleary Gottlieb Steen & Hamilton and Sullivan & Cromwell, have also benefited. Overall, 40 companies have been given a total of $131m (£79m).