JP Morgan seal record Riverside South deal
JP Morgan has put pen to paper on a deal to move into Riverside South.
The firm will abandon the City to house its European headquarters in the Canary Wharf development, in one of the biggest property transactions for a single building in London history.
The deal ends a long-running tug of war for the banking giant between the Wharf and the Square mile. JP Morgan looked to have opted for the City when it began negotiations for a site on Fore Street last May, but switched its attentions to Canary Wharf after talks broke down in July this year.
It has paid an initial £237million for a 999-year leasehold interest in the land, but will also be subject to building costs and will pay Canary Wharf Group to act as development and construction manager on-site. Work has already taken place on the foundations of the prominent project to the west of the estate. Were JP Morgan to pull out of the deal, it would be liable to pay £76million to CWG, as well as the bill for work already completed.
Planning permission has already been granted for Riverside South, which could be completed by 2013. While JP Morgan has a 1.9million square foot space at its disposal, it has the option to reduce this area depending on its needs.
The pace of the construction of the development will now be dictated by JP Morgan, and it will take full control of the scheme on completion.