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Citigroup has confirmed that the cost of refitting its 42-storey tower at Canary Wharf in London has risen to USD 1.5 billion, almost matching what it paid to acquire the property in 2019. The budget increase has been attributed to the decision to expand the workspace for a growing workforce. The revamp aims to incorporate gardens, amenities, and upgraded energy and water systems to make the workplace more attractive as the bank continues to support hybrid working.
Citigroup has revealed that its expenditure on refitting its London tower in Canary Wharf has escalated to USD 1.5 billion, underscoring the high costs involved in upgrading older workplaces to encourage employees back into the office. This amount is nearly equivalent to the GBP 1.2 billion the bank had paid to purchase the 42-storey building in 2019. Advertisement
A Citi executive conveyed that the budget had been increased after the bank decided to utilise more space within the tower to accommodate its growing workforce, though the original budget figure was not disclosed. The bank emphasised that this substantial investment signalled its long-term commitment to Britain, where it employs about 14,000 people, including 10,000 based in London.
The executive mentioned that Citi's Chief Executive Officer Jane Fraser was set to visit Britain during the week, coinciding with the state visit of U.S. President Donald Trump, joining other American business leaders in meetings with British ministers.
The transformation of the building at 25 Canada Square is set to include new gardens, enhanced amenities, interconnected multi-level "villages" to bring teams together, and modernised energy and water systems. The Financial Times had reported earlier this year that the cost had surpassed GBP 1 billion.
Under Fraser's leadership, Citi has diverged from the wider Wall Street trend by maintaining a hybrid working model that allows employees to work up to two days a week remotely. The bank said its London-based staff would start moving into the revamped building from the second quarter of next year. While the project had initially been aimed for completion in 2025, Citi has stated that it remains on schedule as per its latest timeline.
This large-scale refurbishment comes as the COVID-19 pandemic reshaped working habits, leaving office property values battered and compelling landlords to reconsider older properties, particularly in business hubs like Canary Wharf. The area has seen other shifts, with Canary Wharf Group planning to refurbish a nearby 45-floor tower vacated by HSBC, while JPMorgan is evaluating whether to renovate its own tower, build a new one, or relocate to central London.
Source - Reuters
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