JP Morgan has entered exclusive talks with the City of London and property developer Hammerson to build new European headquarters in the City, bucking the trend of banks moving east to Canary Wharf.
The proposed headquarters, to be located on property between London Wall and Fore Street, would consolidate J.P. Morgan's investment bank from several locations into one site with four trading floors and more than 1 million square feet, the bank said today.
J.P. Morgan, founded in London in 1837, had also been considering a site in Canary Wharf, where Barclays, Lehman Brothers and Morgan Stanley, among others, have already relocated.
"Both the City and Canary Wharf are fantastic places to do business," a J.P. Morgan spokesman said. "This site is simply our preferred choice based on our criteria."
The bank said it considered build quality, favourable economics and location as its three main factors in selecting a site.
A spokesman for Canary Wharf Group, owned by Songbird Estates, declined to comment.
The proposed building will not house the company's asset management and treasury and securities services businesses.
J.P. Morgan's exclusivity period will last for 90 days, during which final terms will be agreed. Estimated costs for building the site were not disclosed.