Under the terms of the agreement announced this week, Hammersonwill work in partnership with the City of London Corp., whichcurrently owns the property, as development manager to overhaul andexpand the tower. JPMorgan would acquire the leasehold interest inthe building and have an ownership interest going forward.According to Hammerson chief executive John Richards, theundertaking will not only provide a "prestigious" new Europeanheadquarters for JPMorgan, it will "maintain the bank's longtradition of operating within the Square Mile," London's famousfinancial district.

"We are delighted with this agreement," adds City of LondonCorp. official Michael Snyder. "This new building and JPMorgan'scontinued presence in the city will reinforce London's pre-eminentposition as Europe's leading financial capital." Along those samelines, HSBCCorp. announced this week that it will sell its Londonheadquarters for $2.2 billion USD, but signed a leaseback provisionthere committing to the city for another 20 years. That1.1-million-sf building at 8 Canada Square is located in London'sCanary Wharf, an area of the city that has seen severalhigh-profile companies move to in the past decade.

On the St. Alphonse redevelopment, a preliminary design has beencreated by KPF Architects and KKS Strategy has created interiorspaces as requested by JPMorgan. Project officials expect to submita planning application in the coming months to the city. Acompletion date on the redevelopment will depend on when work cancommence, Hammerson explains.