JP Morgan acquires its own London offices for more than €1bn

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  • JP Morgan acquires its own London offices for more than €1bn

UK - Investment bank JP Morgan has taken ownership of 25 Bank Street in Canary Wharf, which will become its new European headquarters in 2012, and another London office housing its treasury and securities services division for close to £850m (€1.01bn).

JP Morgan plans to move to the new development, which has more than a million square feet of space, in its entirety in 2012. The investment bank's 11,000 employees in London are currently spread across four properties.

There were reports in the summer that the investment bank was reconsidering the move due to a lack of government support for the financial services sector in the UK.

"Even during the recession, we have continued to invest and grow our businesses internationally," said Jamie Dimon, chairman and chief executive at JP Morgan.

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.
"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 firm has also agreed to purchase 60 Victoria Embankment, a London building that the firm has been leasing since 1991, for a reported £350m.

"These properties are long-term investments and represent our continued commitment to London as one of the world's most important financial centres," said Jes Staley, CEO of the investment bank.

Frank Bisignano, chief administrative officer, added: "These properties are among the most attractive pieces of real estate in London. These buildings ensure that our employees will have the necessary technology, infrastructure and amenities to take our businesses forward."

Private equity firm The Carlyle Group sold 60 Victoria Embankment just months after it acquired the building for approximately £173m - less than half the reported sale price to JP Morgan.

"Although we originally envisaged a hold and redevelop strategy for 60 Victoria Embankment, we have agreed to sell it to JP Morgan," said Robert Hodges, managing director at The Carlyle Group.

"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."

Hodges added: "We will continue to progress our plans for the remaining assets in the portfolio and look forward to implementing these in the future."

Hodges added: "We will continue to progress our plans for the remaining assets in the portfolio and look forward to implementing these in the future."
 

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