Construction work on the new 700,000 sq ft
City offices for UBS is to go ahead after British Land and Blackstone have satisfied the outstanding conditions that were placed on the agreement.
Delivery of the bespoke headquarters is expected during the fourth quarter of 2014, with demolition already underway of the existing premises at 4 and 6 Broadgate. The new
City offices will be leased by UBS for 18.2 years until the first break, with 18 months rent-free.
An initial rent of £54.50 per sq ft will be paid. Under the agreement between UBS and British Land and Blackstone, the financial giant cannot exercise a lease break on its current
City offices at Broadgate until up to 36 months after the new space has been completed.
This existing space spans 100 Liverpool Street, 8-10 Broadgate and 1-2 Finsbury Avenue.
Commenting on the announcement, head of offices at British Land Tim Roberts said: "This is another significant milestone in the development of the new UBS building at 5 Broadgate and a real boost for the City. The Broadgate estate continues to evolve to serve the needs of a range of City occupiers and the 30,000 people based there."
The two developers and UBS agreed to defer the lease breaks to enable British Land and Blackstone to receive an additional £74 million in rent.
It would appear the Square Mile has had something of a boost of late, with Land Securities recently revealing its
London offices at One New Change are 82 per cent let.
CB Richard Ellis Global Investors was the last tenant to agree to space in the business hub, taking up 25,200 sq ft, the commercial property firm's third quarter interim management statement noted.
Local occupiers close to One New Change include the London Stock Exchange, Commerzbank, Lloyds TSB and Eversheds.
Posted by David Hudek
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