Speculation about the effects of the proposed merger of Union Bank of Switzerland and Swiss Bank Corporation continues as both firms refuse to give details on where the new firm’s London operation will be located.
But sources at UBS, which owns the freehold on its 31,586 sq m (340,000 sq ft) headquarters building at 100 Liverpool Street, said that the company may decide to sub-let the building as part of the merger process.
Around 2,500 staff are based at the Liverpool Street offices, but job cuts are expected once the two firms’ investment arms are merged under the banner of Warburg Dillon Read. The remaining employees could be housed at one or more of Swiss Bank Corporation’s London offices. Its British arm, SBC Warburg, occupies several offices in EC2 and EC4.
It is thought unlikely that SBC will vacate any of its London buildings. Leases are not due to expire until well into the next century and the company ruled out a large-scale rationalisation of space after taking over SG Warburg in 1995, concluding that it would be too expensive
But if the new company did decide to search for new accommodation, city agents estimate that its requirement would be for between 46,450 sq m and 55,740 sq m (500,000 and 600,000 sq ft) of space.
“That would be yet another example of the growing demand for City super-buildings,” said Mark Bateman of Grimley’s City office. “With the number of changes going on in Broadgate, there is an excellent opportunity to consolidate in that part of the world,” he added.
Egi News 09/12/1997
