British Land agrees UBS Broadgate deal
British Land announced a major City offices deal this morning, finally reaching agreement on a transaction that has been the subject of speculation for several months. The property group, together with its joint venture partner Blackstone, has signed a deal with UBS for the development of a new 700,000 sq ft building on its Broadgate complex.
The new building, on the site of 4 and 6 Broadgate, will have an initial headline rent of £54.50 per sq ft, with annual RPI-linked increases with a weighed average lease length of 18.2 years. The agreement includes the deferral of breaks in existing UBS lease agreements on other Broadgate buildings. British Land says the deal, which is still subject to planning approval, increases the average lease length at Broadgate by up to 2.4 years.
Development costs are put at around £340m, excluding land and interest costs. The completion to shell and core is scheduled for the second half of 2014.
“The new building represents a significant commitment by UBS to the City and Broadgate in particular,” British Land said. “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,” it added.
