JP Morgan’s plan to move to Canary Wharf was much talked about and the city was looking forward to housing the financial biggie. However as JP Morgan stands undecided if they want to move there or secure a space in London, the faith of Canary Wharf hangs on.

If JP Morgan were to move to this location they would invest approximately £1.5b. However the bank is now contemplating moving to areas that already have buildings or other developmental sites.

The bank has not yet decided if they are moving out of the Canary Wharf area however they are talking with various officials about leasing commercial spaces to house the thousand of employees that work in the Canary Wharf area and in the city.

The Chief Executive Officer of JP Morgan Bank first thought of making changes in the developmental plan when the new taxation policy was put in place. Jamie Dimon was upset at the tax reduction that was levied on bonuses. This led to several institutions leading to rethink their operations in London.

JP Morgan bank purchased the property Riverside South from the Canary Wharf Group in November 2008. The project was reported to be closed at £237m. The terms of the agreement stated that if the project was not complete by 2010 the company would forfeit £76m.

The bank is likely to gain from renting a few commercial properties as opposed to renting their own buildings. It may also lead to them saving some money in the process. Some are of the firm belief that the fact that there are no buildings available in the financial district has led to the bank deciding to opt for a rent desk space property rather than buy one.

This entry was posted on Wednesday, March 10th, 2010 at 4:46 am and is filed under Biz Stuff, Corporate Evangelism, Real Estate Hall. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.