Commercial Finance Specialists

British Land has agreed a deal with UBS to build 700,000 sq ft of office space on the Broadgate Estate.

One of the UK's largest property investment firms has agreed a deal to undertake a new commercial development project in London.

British Land has agreed with UBS, the major tenant at its existing Broadgate estate, to add another 700,000 sq ft of office space at the site.

The move is part of an ongoing period of property investment at the site, the firm claims, in a bid to ensure that it remains "the premier City of London office estate".

Completion of the project, which is still subject to planning approval, is expected in the second half of 2014 at a total cost of £340 million.

British Land's chief executive Chris Grigg said the company was delighted that UBS had committed to Broadgate in this way.

He added: "The transaction demonstrates the enduring appeal of this important City of London office estate.

"At the same time, the new building will enhance the overall quality of Broadgate while generating an attractive development return."

British Land sold 50 per cent of the Broadgate Estate into a joint venture with Blackstone for £1.1 billion last year, in order to reduce its exposure.

Posted by Allan Flowers.