Wall Street giant Bank of America Merrill Lynch has kicked off its search for a vast new London office, in what will be seen as a major vote of confidence in the capital as the UK prepares for Brexit.
The bank has hired property agents CBRE to identify sites in London as big as 500, 000 square feet – similar in size to its current premises, which serve as the bank’s European headquarters.
The lease on the bank’s plush site near St Paul’s Cathedral expires in five years’ time. BAML has to decide by 2020 whether to roll over the lease or move elsewhere. It employs some 1, 200 bankers and 600 back office staff in London.
Bank America Merrill Lynch Royalty Free Images, Stock Photos & Pictures
The revelation that America’s second-largest bank is looking to cement its UK presence will boost confidence that London can remain Europe’s financial hub after the UK leaves the European Union and attract multinationals from other industries.
There have been fears that Brexit could lead to an exodus of financial services jobs out of London to cities such as Paris, Frankfurt or Dublin, as firms scramble to secure access to the EU’s single market.
Firms are drawing up contingency plans to deal with the fall-out from Brexit, including the possibility of moving jobs to other cities in the EU.
One Canada Square & Bank Of America/merrill Lynch Building…
However, most businesses have not taken any firm decisions. Most are waiting for Prime Minister Theresa May to trigger Article 50, the process by which the country will leave the EU, for clarity on the type of deal London will strike with Brussels.
In the meantime, confidence is growing that the UK will remain an attractive hub for companies across a range of industries after it leaves the EU, particularly technology firms.
Technology giant Apple, for example, last year unveiled plans to lease 500, 000 sq ft at the Battersea Power Station development to create a new London headquarters with enough space to house 3, 000 staff.
Bank Of America Headquarters In Canary Wharf, London, Uk Stock Photo
Fellow US companies Google and Facebook have also announced plans recently to expand their presence in the UK capital. Google is building a new 10-storey, 650, 000 sq ft complex in the capital. Meanwhile, Facebook is planning to switch to new offices in central London’s Fitzrovia district, a move that will see the social networking giant hire an extra 500 employees in the UK, increasing its headcount by 50pc to more than 1, 500.
It is understood that BAML engaged CBRE to start an office search before the EU referendum in June. Its decision to push ahead with the hunt despite the vote is a huge boost for the Square Mile.
Like other banks, it is waiting for London to start talks with Brussels before committing to any decisions. In total, it employs more than 200, 000 staff worldwide.
Canada Square, Bank Of America, Canary Wharf Estate, London, United Kingdom Stock Photo
Both HSBC and UBS have said that they could shift 1, 000 roles out of the UK in the worst-case scenario. Barclays is considering beefing up the small office it has in Dublin but has pledged to keep its headquarters in the UK.
In the aftermath of the referendum, BAML’s European boss, Alex Wilmot-Sitwell, said he was “very confident” that the bank could successfully execute a plan to protect its European business before Brexit comes into effect. He told staff to “avoid distraction... during these unprecedented times” and “focus on clients”.
Fellow US companies Google and Facebook have also announced plans recently to expand their presence in the UK capital. Google is building a new 10-storey, 650, 000 sq ft complex in the capital. Meanwhile, Facebook is planning to switch to new offices in central London’s Fitzrovia district, a move that will see the social networking giant hire an extra 500 employees in the UK, increasing its headcount by 50pc to more than 1, 500.
It is understood that BAML engaged CBRE to start an office search before the EU referendum in June. Its decision to push ahead with the hunt despite the vote is a huge boost for the Square Mile.
Like other banks, it is waiting for London to start talks with Brussels before committing to any decisions. In total, it employs more than 200, 000 staff worldwide.
Canada Square, Bank Of America, Canary Wharf Estate, London, United Kingdom Stock Photo
Both HSBC and UBS have said that they could shift 1, 000 roles out of the UK in the worst-case scenario. Barclays is considering beefing up the small office it has in Dublin but has pledged to keep its headquarters in the UK.
In the aftermath of the referendum, BAML’s European boss, Alex Wilmot-Sitwell, said he was “very confident” that the bank could successfully execute a plan to protect its European business before Brexit comes into effect. He told staff to “avoid distraction... during these unprecedented times” and “focus on clients”.
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