Reports suggest that the developers of the Pinnacle tower in the City of London are about to secure the much-needed first tenant for the building.

News sources including the London Evening Standard report that investment fund management group Schroders plc are considering leasing up to as much as a quarter of the available office space. Developers of the tower Arab Investments need to secure a large lease on the building in order to secure further funding to proceed with construction of the large-scale development.

The Pinnacle is a speculative development and is the only new City office building under construction that is scheduled to open after 2011. When complete it will be the tallest office block in the City, standing at some 288m, affording approximately 1m sq ft of premium floor space over 61 floors. The building has been dubbed the Helter-Skelter due to the spiral like design of the exterior. Architects behind the development are Kohn Pedersen Fox.

It is suggested that Arab Investments are hoping to let 250,000 sq ft of space on the third to 10th floors to a single company at rental prices of approximately £60/sq ft. The highest floors in the tower will be the last to be let at rental prices of up to £90/sq ft. Bloomberg have interviewed Khalid Affara, managing director of London-based Arab Investments who said: “I’m confident I will sign a tenant to enable this project to continue” and without naming names he also suggests that “two or three” providers of serviced offices are waiting to sign lease agreements on the Pinnacle.

Commercial agents CB Richard Ellis have just announced that they have been appointed as joint leasing agent to work alongside Savills Commercial on The Pinnacle. Mark Slim, Executive Director, Central London, CB Richard Ellis, said: “The Pinnacle will be one of the City’s finest buildings and this mandate represents a major win for the firm. CBRE has wanted to be part of the Pinnacle team for some time and we are delighted to be involved going forward. We will put the full global resources of CBRE into motion on behalf of The Pinnacle Limited and its shareholders.”

Slim goes on to say: “Availability in the City is heading down fast. There’s not a lot of choice for tenants in terms of big floor plates and big buildings.”