JPMorgan Chase is weighing plans to construct a new tower at Canary Wharf as it assesses the long-term future of its European headquarters in London. The US banking giant is examining whether to proceed with developing the Riverside South site, which it purchased in 2008, after concluding that refurbishing its existing Docklands offices could be prohibitively expensive.
The bank currently operates from 25 Bank Street, a 33-storey building formerly occupied by Lehman Brothers. JPMorgan acquired the property in the aftermath of Lehman’s collapse, despite having already begun work on the Riverside South site. However, 25 Bank Street has since become less fit for purpose: it is now relatively dated and, with the bank’s recent UK expansion — including the launch of its retail arm, Chase — increasingly undersized.
According to people familiar with the matter, JPMorgan has been conducting extensive due diligence on the Riverside South site. Much of the groundwork has already been completed, with foundations laid and basement levels constructed before plans were shelved during the financial crisis. The revived proposal would see the bank consolidate its London-based workforce, which numbers around 22,000, into a new flagship headquarters.
One major factor behind the review is the soaring cost of office refits in Canary Wharf. A refurbishment of 25 Bank Street would not only be highly disruptive but also extremely costly. Earlier this year, the Financial Times reported that Citigroup’s ongoing renovation of its own Canary Wharf tower is expected to exceed £1bn, underscoring the scale of potential expenditure facing JPMorgan.
The bank has already moved to secure additional space in London, leasing a building formerly occupied by Credit Suisse to house its growing Chase retail operations. However, executives believe that a purpose-built headquarters may offer the most efficient long-term solution, particularly as the bank prepares to relocate 14,000 employees into its new Foster + Partners-designed tower in New York later this month.
Although a move to the City of London has also been considered, following the example of HSBC’s recent decision to leave Canary Wharf, insiders suggest that finding a suitable site of sufficient scale would be difficult. This makes a new build at Riverside South the more likely outcome should JPMorgan decide to move ahead.
The final decision has not yet been taken, but the outcome will have significant implications for both Canary Wharf’s future and London’s standing as a European financial hub.
