JP Morgan has decided to own and occupy a new 1m sq ft headquarters in the City, after turning its back on Canary Wharf.
The US investment bank, which has been looking for a headquarters through DTZ, narrowed its search down to just a City of London Corporation-owned site at St Alphage House, EC2, and Canary Wharf.
The threat of losing JP Morgan to Canary Wharf had worried the City, which has lost many investment banks to the Docklands in the past 10 years.
There were concerns that JP Morgan would choose Canary as St Alphage House does not have planning consent for a large scheme.
However, JP Morgan has announced that it has entered into an exclusivity agreement with the City of London Corporation and development partner Hammerson to move into a new 1m sq ft scheme to be designed by US architect KPF.
Hammerson said it has drawn up a preliminary scheme, which is anticipated to go into planning later this year. The City and Hammerson are aiming to start on site during 2008
Michael Snyder, chairman of the policy City of London committee, said: “We are delighted with this agreement. This new building and JP Morgan’s continued presence in the City will reinforce London’s pre-eminent position as Europe’s leading financial capital.”
JP Morgan plans to buy the long leasehold interest in the site from the City of London Corporation before construction in order to own the building.
Knight Frank advised Hammerson and the City of London in negotiations with JP Morgan; Jones Lang LaSalle advises the City in its capacity as owner of St. Alphage House.
