Addleshaw Goddard‘s cash reserves dropped by £5.5m in the 2007-08 financial year as a result of taking on new London headquarters.
According to the firm’s LLP accounts, Addleshaws had £11m in the bank and in hand at the end of the financial year compared with £16.5m at the end of the previous financial year.
Managing partner Mark Jones said: “We had a number of costs for items at the new Milton Gate offices, such as professional fees and investment spend and the year on year cash movement was £5m.”
The firm signed a lease on a 200,000 sq ft single site City office at Milton Gate earlier this year and is believed to be paying £53.50 per square foot. The firm has agreed terms on a seven-year loan, provided by more than one bank, which will cover about 80 per cent of the fit-out cost.
Work on the fit out will start in January 2009 with the firm expected to move into the property next autumn.
Addleshaws will sub-let the fifth floor of the new office and is also looking to rent out half of one further floor for three years.
Addleshaws currently pays £3m rent on 80,000sq ft in Aldersgate Street and £1.4m on 45,000sq ft in Noble Street.
According to comments made by Mark Jones in October (TheLawyer.com 20 October 2008) the firm currently has tenants lined up for both the buildings it is exiting.