Bluebutton, British Land and Blackstone’s joint venture company, has signed a deal to provide UBS with prestigious office building at the City of London Broadgate Estate. The deal with the Swiss Bank, estimated to be worth around £600 million, is the largest in the City since the start of the recession.
Subject to planning permission, Bluebutton will construct a bespoke office building for UBS on the site of 4 and 6 Broadgate. The building will comprise four trading floors as well as general offices – a total of 700,000 square feet of London office space.
The initial headline rent will be £54.50 per square foot with annual RPI-linked increases, with a weighted average lease length of 18.2 years. There will be a deferral of breaks in existing UBS lease agreements on other Broadgate buildings. Practical completion to the shell and core is scheduled for the second half of 2014.