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Broadgate, the largest cluster of office space in the financial district of London, could be facing some major changes due to alleged plans of moving out by UBS AG. The

Broadgate complex owned by British Land and valued at 2.3 billion pounds presently, is constituted of 16 shared office buildings, shops, places for entertainment like an ice skating rinks, restaurants etc. British Land, which was planning to sell one-third of its interests in the Broadgate property has decided to reconsider its decision in wake of the alleged move by UBS. The lease agreement between the parties permits UBS to move out even before completion of five years of lease.

The employees of UBS, who were involved in the negotiations over the proposal, have reported that the company is planning to build four blocks for official purposes on a piece of land purchased in 2005. The land is situated at a very short distance from their present location. Consultations with a broker, Jones Lang LaSalle Inc., are already in progress for the same.

UBS has been looking forward to reducing its expenses this year and has already laid off around 7,500 employees. Even if they do not move out of the complex completely, they are most likely to reduce the desk space rented, which would cause losses to the tune of 50 million pounds to British Land by 2015. If the UBS move does materialize, it will become very difficult for British Land to look for a partner for the Broadgate complex.

This entry was posted on Friday, July 3rd, 2009 at 7:23 am and is filed under Commercial Stuff, It's Your Business, PR. You can subscribe via RSS 2.0 feed to this post's comments. Both comments and pings are currently closed.