Main construction work on British Land and Blackstone’s 5 Broadgate £340m development will begin in April after the developers announced they had satisfied UBS’ outstanding conditions on a pre-let tenancy agreement.
Demolition of the existing 4 and 6 Broadgate buildings is already underway, with around 60 per cent of the project’s construction costs now placed or tendered within budget and programme.
Mace is expected to start on the 700,000 sq ft building in April, almost a year after work on the project was due to begin.
However the planned completition date of Q4 2014 has not changed despite the delay.
The project was at the centre of a political fight last year after English Heritage recommended it for listed status but were overuled by culture secretary Jeremy Hunt.
Swiss bank UBS has agreed to lease the entire building for an average of 18.2 years to first break at an initial rent of £54.50 per sq ft subject to annual increases in line with inflation.
It will be given a rent free period of 18 months.
British Land head of offices Tim Roberts said: “This is another significant milestone in the development of the new UBS building at 5 Broadgate and a real boost for the City.
“The Broadgate estate continues to evolve to serve the needs of a range of city occupiers and the 30,000 people based there.”