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JPMorgan Chase & Co will build a multi-billion-pound tower in London's Canary Wharf, a 3-million-sq-ft development expected to contribute '9.9 billion to the economy and support 7,800 jobs over six years. Chairman Jamie Dimon said the UK government's growth-focused budget helped shape the decision, which Chancellor Rachel Reeves called a strong vote of confidence in the country. Designed by Foster + Partners, the tower will house up to 12,000 employees and exceed the size of The Shard. The move is a major boost for Canary Wharf as global firms return to full-time office use. The project will rise on JPMorgan's long-held Riverside South site and include public spaces and staff amenities.
JPMorgan Chase & Co recently announced that it would build a major new tower in London's Canary Wharf, setting out plans to invest several billion pounds shortly after the UK government presented a budget that sought to reinforce public finances and stimulate economic growth. The bank said the development would contribute 9.9 billion pounds, equivalent to about USD 13.1 billion, to the local economy across six years, including construction spending, and would support the creation of 7,800 jobs. Jamie Dimon, the bank's Chairman and CEO, noted that the government's commitment to economic expansion had played an important role in its decision, making the remarks after he commended the finance minister's latest budget, which avoided imposing further taxes on large banks. In response, Chancellor Rachel Reeves characterised the move as a multi-billion-pound endorsement of the country's prospects. Advertisement
The proposed 3 million-square-foot (280,000 square metres) building will offer more than double the floorspace of The Shard, currently Britain's tallest tower at about 1.3 million square feet, and will also exceed JPMorgan's recently completed 2.5 million-square-foot global headquarters in New York. A source familiar with the scheme indicated that the build would cost several billion pounds and that design decisions, including the final height, were still being refined. Foster + Partners, led by architect Norman Foster and responsible for the bank's New York headquarters, will design the tower.
JPMorgan's decision represents a major win for Canary Wharf, which has been working to retain global tenants after the shift in working patterns during the pandemic. The district has seen improved momentum in recent months as more companies have reinstated full-time office requirements, and JPMorgan has been among the strictest, calling staff back five days a week. Reuters previously reported that the bank had been assessing alternative London locations after outgrowing its 33-storey tower in Canary Wharf, with options including a possible move to the City of London. The planned development will accommodate up to 12,000 employees.
The bank said the investment still depended on the broader UK business environment remaining favourable. Although the tax-raising budget helped reduce short-term uncertainty, JPMorgan's head of European rates strategy said earlier this week that the bank continued to expect UK government bond yields to rise next year. Should the project advance as planned, it would mark a significant post-Brexit gain for London, particularly after several global banks relocated thousands of roles to EU cities to continue serving clients there.
The tower will be built on the Riverside South site, purchased by the bank in 2008 on the western edge of Canary Wharf along the River Thames. JPMorgan had originally intended to establish its UK headquarters there, but the plan was shelved after the global financial crisis and the bank instead moved into the former Lehman Brothers offices. It has since outgrown the 1.1 million-square-foot building, partly due to the expansion of its UK retail bank, Chase, which now competes with lenders such as Lloyds and Barclays across current accounts and credit cards.
Shobi Khan, CEO of Canary Wharf Group, described the decision as a defining moment for the estate and noted that the current year was set to become its strongest for leasing activity in more than a decade. Most recent construction in Canary Wharf has been residential, and office vacancy across the wider Docklands stands at 15%, compared with the London average of 10.4%, based on CoStar data. JPMorgan is being advised by former Canary Wharf Group chairman George Iacobescu, who was recently reported to be assisting Qatar's wealth fund with plans to revamp the nearby HSBC tower ahead of that bank's expected relocation in 2027.
The project will include a public park and staff-focused amenities such as rooftop terraces, wellness facilities, nursing rooms, restaurants and cafes. In a related development, Goldman Sachs said earlier this week that it would expand its Birmingham office in the coming years, hiring 500 additional staff to double its presence in the city.
Source - PTI
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