JPMorgan Chase buys old Lehman London HQ

, Comments 0 comments

US bank JPMorgan Chase has agreed to buy the former European headquarter of failed peer Lehman Brothers for some 500 million pounds, vendor Canary Wharf Group announced on Monday.

"JPMorgan today acquired 25 Bank Street in Canary Wharf from Canary Wharf Group Plc," CWG said in a statement, added that the US firm will pay a total of 495 million pounds (585 million euros, 768 million dollars).

"The building will become the new European headquarters of JPM's investment bank in 2012," it added

The tower, which has more than one million square feet of floor space, used to house Lehman Brothers until the US investment bank collapsed in September 2008 as the global financial crisis broke.

The move will bring together JPMorgan's investment bank division which is currently spread across four locations in London.

"Even during the recession, we have continued to invest and grow our businesses internationally," JPMorgan chief executive Jamie Dimon said in the statement.

"This acquisition is a long-term investment and represents part of our continued commitment to London as one of the world's most important financial centres."

JPMorgan added that it would continue to work alongside CWG to build the 1.5-billion-pound Riverside South development at Canary Wharf.

In a separate statement, JPMorgan added that it has also agreed to purchase its office building 60 Victoria Embankment in central London from private equity group Carlyle. It did not disclose the price.

The bank has leased the property, which houses its Treasury and Securities Services division, since 1991.

© 2010 AFP

0 Comments To This Article