Canary Wharf Secures Major Boost with BZW Relocation

Strategic Insights -

Canary Wharf, the London Docklands development, has received a significant vote of confidence with the relocation of 1,800 staff from PAULINE SPRINGETT BZW, the investment banking arm of Barclays Bank. This move will not only give the development the financial muscle to progress with the next stage of construction but also cement its position as a prime location for business in central London.

Key Takeaways:

  • BZW is relocating 1,800 staff to Canary Wharf, occupying 510,000 square feet of space, a record single office letting in the UK.
  • The relocation will reduce the amount of vacant space at Canary Wharf to 1 million sq ft, just 18 months after the development came out of administration in a £1.1 billion rescue deal.
  • BZW will start to move staff to Canary Wharf in late 1996, with the settlements and back-office staff, structured finance, bank finance, risk management, debt and capital markets, and the forex division moving in.
  • The remaining BZW employees will be located at a soon-to-be-refurbished Royal Mint Court, which will house the equities, corporate finance, and asset management divisions, as well as a client reception centre.
  • Sir Peter Levene, chief executive and chairman of Canary Wharf, described the BZW decision as a vote of confidence, firmly establishing the development as a prime location for business in central London.
  • The relocation deal has taken over a year to negotiate, with no details of the letting terms made public, but Sir Peter denied suggestions that BZW had negotiated a better than average deal due to Barclays' shareholding in Sylvester Investments, the holding company of Canary Wharf Limited.

Statistics:

  • 510,000 square feet: the amount of space BZW will occupy at Canary Wharf as part of the relocation deal.
  • 1.8 million sq ft: the total amount of space BZW will occupy, including the refurbished Royal Mint Court.
  • £1.1 billion: the amount invested in the rescue deal that saw Canary Wharf come out of administration 18 months ago.
  • 1,800: the number of BZW staff relocating to Canary Wharf.
  • 50-storey tower: the centerpiece of the Canary Wharf development, standing at 800ft.
  • £BZW will start to move staff to Canary Wharf in late 1996 with an initial 1,800 employees, with further staff relocating in the near future.

Sources:

  • PAULINE SPRINGETT BZW's announcement of the relocation
  • Barclays Bank
  • Canary Wharf Limited
  • The Times (1996)