JP Morgan snaps up major office properties in the capital for headquarters

JPMorgan bought the Lehman building in the Canary Wharf financial district for 495m from the Canary Wharf Group (CWG), to group together all of its investment bank in London.

It also said yesterday it was still reviewing its use of a skyscraper complex with an estimated cost of 1.5bn nearby – a site it bought in late 2008 as part of a long-term ambition to consolidate its London properties.

"That will be a project that continues ... and George (Iacobescu, CWG chief executive) and I will talk about the best utilisation for that," JPMorgan chief administrative officer Frank Bisignano said.

The bank was committed to having offices in both the City of London financial district – where it bought the 60 Victoria Embankment site it has been leasing – as well as in Canary Wharf, a second financial district in London's former Docklands.

"Under one roof has never been the sole objective because when you think about the workforce and all the things we do, we will always have a presence in the centre of London and out here (Canary Wharf)," Mr Bisignano said.

Work stopped on the Riverside South site earlier this year, triggering talk JPMorgan, feeling the heat from negative sentiment against banks after the crisis, would axe the conspicuous project.

That work will now continue, with foundations having already been laid for a 2.4 million square foot development, more than twice the size of the 1 million sq ft Lehman building, while JPMorgan reviews its use.

"Short term, we will be building it up to street level and then we will obviously also be reviewing what is best to go on that site," John Garwood, a spokesman for CWG, said.

JPMorgan said it bought the 420,000 sq ft property on 60 Victoria Embankment from private equity firm the Carlyle Group for an undisclosed price.

It had been leasing the property since 1991 for its Treasury and Securities Services division.