British Land and Blackstone have announced they have satisfied the remaining outstanding conditions on the agreement with UBS AG to pre-let 5 Broadgate and now that the agreement is unconditional development of the new 700,000 sq ft building will proceed.

Demolition of the existing 4 & 6 Broadgate buildings is well underway and will be completed in April, with delivery of the new bespoke building on schedule for Q4 2014. The Joint Venture has already placed or tendered around 60% of the project’s construction costs within budget and programme.

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UBS will lease the entire building for an average of 18.2 years to first break at an initial rent of £54.50 per sq ft subject to annual increases in line with RPI. UBS will be given a rent free period of 18 months.

Tim Roberts, Head of Offices for British Land, said: "This is another significant milestone in the development of the new UBS building at 5 Broadgate and a real boost for the City. The Broadgate estate continues to evolve to serve the needs of a range of city occupiers and the 30,000 people based there."

(CD/GK)