Broadgate May Lose its Prized Office Space Lessee
Posted by admin on July 3rd, 2009Reports suggest that UBS AG has worked out extensive plans for reducing expenses in the current year. After laying off over 7,000 employees, it has been thinking of either reducing or if feasible, completely giving up its shared offices in London’s Broadgate complex. Incidentally, the lease agreement between UBS and Broadgate permits it to vacate the space within five years.
Insiders, who participated in the negotiation, requesting not to be named, disclosed that the bank is planning to proceed with construction of several blocks on the empty land it had bought in 2005. The company, it is said, is in touch with Jones Lang LaSalle Inc brokers to ponder over the decision of construction on their land across the street.
British Land, which is the largest group for office building in the financial district of London and is the owner of Broadgate, is considering selling away one third of it. However, sales plans are on hold due to the alleged move by UBS. If UBS does decide to move out, it will cause the office rental value to fall by fifty million pounds by 2015.
The Broadgate property is presently valued at 2.3 billion pounds consisting of 16 office buildings, stores, restaurants as well as an ice skating rink built inside the complex. British Land now has to look for a partner for the complex so that they can raise cash to get rid of some of their liabilities.











