British Land and Blackstone Group have announced that Bluebutton Properties, their joint venture company, has signed a leasing agreement with Swiss bank UBS for the development of a new £340 mln (EUR 411 mln) building on the Broadgate Estate in London.
British Land and Blackstone Group have announced that Bluebutton Properties, their joint venture company, has signed a leasing agreement with Swiss bank UBS for the development of a new £340 mln (EUR 411 mln) building on the Broadgate Estate in London.
The new 700,000 square foot (65,000 m2) building represents a significant commitment by UBS to the City and Broadgate in particular. 'The development marks another important stage in the ongoing investment programme at Broadgate, which will ensure that it remains the premier City of London office estate, providing modern world-class accommodation for its office, retail and leisure occupiers,' the UK REIT said in a statement.
The building is to be developed on the existing site of 4 and 6 Broadgate with an initial headline rent of £54.50 per sq ft with annual RPI-linked increases with a weighted average lease length of 18.2 years. Practical completion to shell and core is scheduled for the second half of 2014
The transaction is subject to planning approval.
Chad Pike, senior managing director of Blackstone, commented: 'Blackstone and British Land have both had long-standing and deep relationships with UBS. We are very excited to find yet another opportunity to work together. We are also excited to have the chance to make a substantial investment in a project that will rejuvenate Broadgate and retain 5,000 employees in the City of London by ensuring a high-quality work environment.'