JP Morgan buys former Lehman HQ to house its European operations

JPMorgan Chase & Co. said on Monday it has bought the former offices of Lehman Brothers in London's Canary Wharf district to use as the European headquarters of its investment bank in 2012. The scheme was sold by the Canary Wharf Group for £495 mln (EUR 585 mln).

JP Morgan has also agreed to purchase 60 Victoria Embankment, a London building that the firm has been leasing since 1991 and that currently accommodates its Treasury and Securities Services division.

'This is very good news for London and for Canary Wharf,' said George Iacobescu, Chief Executive of Canary Wharf Group. 'JP Morgan is one of the largest and most prestigious banks in the world. This decision secures London as the European headquarters for JP Morgan and is a huge boost for the UK as the economic recovery starts.'

The purchase by JP Morgan comes just a few days after its acquisitions of the Bishops Square office complex in London for £557 mln (EUR 657 mln) and the OpernTurm scheme in Frankfurt for around EUR 550 mln.

'Even during the recession, we have continued to invest and grow our businesses internationally,' said Jamie Dimon, Chairman and CEO. 'These properties are long-term investments and represent our continued commitment to London as one of the world's most important financial centres.'

Completed in 2003, 25 Bank Street had been occupied by Lehman Brothers since its collapse in September 2008. It offers over one million sq ft (93,000 m2) of space, allowing JP Morgan to unify its entire investment bank division in one location. Currently, the investment activities are spread across four London properties.

JP Morgan will also continue to work with the Canary Wharf Group in order to develop the Riverside South site at Canary Wharf for future use.

Commenting on the sale of 60 Victoria Embankment, Robert Hodges, managing director of The Carlyle Group said: 'Although we originally envisaged a hold and redevelop strategy for 60 Victoria Embankment, we have agreed to sell it to JP Morgan. This is an opportunistic reaction to changing and improving market conditions which also allows us to facilitate JP Morgan's long term real estate strategy, whose commitment is positive for London and reflects our own views on the City.'