British Land Co. PLC and Blackstone Group announced on Monday that they will develop a new London headquarters for UBS AG to remain on the Broadgate estate, according to Associated Press.
British Land, the U.K.'s second largest landlord and developer, and Blackstone signed lease agreements with UBS to develop a new 700,000 square foot building on the site of 4 and 6 Broadgate in the City of London.
Two existing buildings will be demolished in order to make way for this new building. The decision is great for the estate as UBS was the estate’s largest tenant with about a quarter of the office space.
The new building, which will be the largest in the City of London’s financial district, is designed for trading and general offices and will be fully let to UBS at an initial headline rent of 54.50 pounds per square foot. The building is still smaller than some of the towers in Canary Wharf. Development costs are around £340mn (excluding land and interest costs).
