Nedbank, one of SA's top-four commercial banks, has succeeded in sub-letting 8,500 square metres of office space in its building at the V&A Waterfront in Cape Town to shipping group Safmarine, after nine months of negotiations.Nedbank inherited the almost-new building from now-defunct banking group BoE, which Nedbank took over in 2003. It has a total area of 23,000 square metres.

In a statement, Nedbank Property Services' head of property sales and portfolio management Derek van den Bergh said the sub-lease would result in substantial savings for Nedbank against its current head lease commitment with the V&A Waterfront Company.

The deal follows the consolidation of offices for several of Nedbank's Western Cape business units in the bank's foreshore building in Cape Town, which was revamped and extended in a 100 million rand project.This meant that the V&A Waterfront building had surplus space, although Nedbank would continue to occupy some 14,500 square metres in the north wing of the building.

According to Safmarine chief financial officer Charles Collings, Safmarine will move into the building on March 1, occupying the entire south wing on an initial 10-year lease. The group will be relocating from its offices in Safmarine House in the city's central business district due to space constraints.