The Radiance of Knowing

UBS AG plans on shifting its office premises from Broadgate to its own place of four blocks on a piece of land across the road. UBS had purchased this land in 2005, and is all set to construct its shared office space buildings there. Its lease conditions on the Broadgate Complex enables it to move out anytime within five years.

UBS is consulting with broker Jones Lang LaSalle Inc. for the move, and they intend to begin work as soon as a decision has been reached. UBS has laid off almost 7,500 people recently, and this move seems to be another measure to combat the effects of recession.

Broadgate, one of the most prominent and largest groups of office buildings in the financial district of London, is owned by British Land - a prominent real estate company. The company is contemplating on selling one-third of its land at Broadgate, which is also the source of nearly 30% of its rent revenue from the complex. This move comes at a bad time, considering the possible relocation of UBS.

It is predicted that the total office rentals on the site at Broadgate would reduce by 50 million pounds by 2015. The current value of property at Broadgate is around 2.3 billion pounds - including 16 office complexes, restaurants, stores and an ice skating rink. In view of this, British Land would incur a large loss if it were to proceed with current plans to sell. There is a need for the company to collaborate with a partner in order to raise the funds required to get it out of financial troubles.