The Prudential Regulation Authority’s new headquarters will be in Moorgate and cost up to £1m a year more than remaining at its current Canary Wharf base.
The Bank has signed contracts for 20 Moorgate until 2027. It says the annual extra costs of the property will be “less than £1m per year over the next 15 years” when compared to the new regulator continuing to operate from the FSA’s Canary Wharf headquarters.
The Financial Services Bill, currently going through Parliament, will split the FSA into two new regulators, the PRA and the Financial Conduct Authority. The PRA will be a subsidiary of the Bank of England. In a statement the Bank says it is important the two new institutions are near to each other.
It says: “The PRA’s physical location will be important in linking its responsibility of prudential supervision of individual financial institutions to the monetary policy, market operations and financial stability functions of the Bank. The benefits to be gained from strong links between these functions mean that locating PRA staff close to the rest of the Bank is highly desirable.”
The Bank is unable to release further details of the deal or when the PRA will move to the new property.
Shadow Treasury financial secretary Chris Leslie raised concerns over the cost and the lack of publicly available information about the deal during Parliamentary debates over the Financial Services Bill.
The Bank, advised by Drivers Jonas Deloitte and Clifford Chance, has signed contracts on the property from the current tenant J.P. Morgan, who were advised by IVG, Jones Lang LaSalle and CMS Cameron McKenna. The building was originally constructed in 2001 and provides 150,000 sq ft of office and support space.