Development of the new £850m UBS headquarters in Broadgate has finally been given the go-ahead, in a move hailed as a sign the UK ‘is open for business’ by commercial property executives.
Plans for the scheme had been put in jeopardy, owing to a bid to have the Broadgate Square office complex made a listed building. English Heritage, responsible for protecting and promoting English culture and environment, declared the mixture of 1980s architecture ‘an exemplar of commercial development in the City’, requiring protection and Grade II status.
The government’s Jeremy Hunt reviewed the case, before giving permission to proceed. In a letter to English Heritage, the Culture Secretary explained his decision, finding Broadgate to be ‘not of sufficient architectural or historical interest to merit listing protection’.
The City’s importance to the UK commercial property market, and the wider UK economy, was underlined by the City of London Corporation, which said it would send a ‘terrible signal’ if the challenge was upheld. UBS is a hugely significant player in the global financial services market, offering investment banking, asset management and wealth management across more than forty countries. It is considered to be the world’s second largest manager of private assets, with 2010 revenues reported to be over $47bn.
Commercial property management and development companies British Land and Blackstone will now proceed with developing the 700,000 sq ft project. It will be situated at 5 Broadgate Place, containing general offices and four trading floors, each accommodating up to 750 traders, and completion is expected during the second half of 2014.
Another business taking a keen interest in the decision was William Hill. The bookmaker put its eggs firmly in the commercial property basket, offering odds of 4/7 that the decision would go in favour of the developers.
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