Massive inward investment win as HSBC announces relocation to Birmingham

IN a huge inward investment win for Birmingham, banking giant HSBC has announced it is to relocate 1,000 jobs to the city. 

It is to set up a new base at the Arena Central scheme which – at 210,000 sq ft – is understood to be the largest property deal in Birmingham since 2002

HSBC has announced it will be locating the national head office of its ring-fenced bank, which will serve its personal and business customers, in Birmingham city centre.

The move will involve relocating some 1,000 roles currently based in London to Birmingham from mid-2017 onwards.

Legal documents are expected to be signed in the next few days and a reserved matters application for the new building has been submitted. Development of the site is anticipated to start by June 2015.  

HSBC is in advanced negotiations to conclude the acquisition of a 250 year lease on a new office comprising 210,000 sq ft at Arena Central. Arena Central is part of Birmingham’s Enterprise Zone within the city centre.  

The creation of a ring-fenced bank is in response to the Financial Services (Banking Reform) Act 2013 and must be completed before 1 January 2019.

HSBC’s decision to create the head office of its UK ring-fenced bank in Birmingham follows a review by the bank of a number of possible head office locations.

Antonio Simoes, chief executive officer of HSBC UK, said: “We have been looking at options for the head office of our ring-fenced bank for some time. It became clear to us that Birmingham would be the right location.

“The city is close to London, but also brings us within easy reach of our 16m customers based across the UK. Birmingham is a vibrant, growing city that has the expertise and infrastructure to support our ring-fenced bank and brings us a step closer to our ambition of being the bank of choice in the UK.”

Chancellor George Osborne said: “I’m delighted that one of Britain’s biggest companies, HSBC, is coming to Birmingham to set up its new UK HQ. The announcement today means 1,000 jobs for the city and a major boost for the Midlands as the engine for growth in Britain.

“Our long term economic plan is all about building up our great cities outside of London and creating a truly national recovery, and I’m glad that our financial industry is contributing to that.”

The bank has been supported by Birmingham City Council and inward investment agency Marketing Birmingham – and its employees will continue to be assisted throughout the relocation process.

Sir Albert Bore, leader of Birmingham City Council, said:  “HSBC joins a number of global companies that want to be a part of Birmingham’s accelerating growth and strong economic prospects.

“We look forward to welcoming the new head office of HSBC’s ring-fenced bank to Birmingham, and will continue to support and advise the bank as its plans move forward.”

HSBC already has close connections with Birmingham. Midland Bank, which was founded in the city in 1836, was acquired by HSBC in 1992.

Andy Street, chair of the Greater Birmingham & Solihull LEP, said: “HSBC’s move to Birmingham will enable the bank to capitalise on all the benefits the city can offer. Supported by the Birmingham City Centre Enterprise Zone, we are ploughing new funding into the local area to boost its connectivity, skills and infrastructure.”

The firm will be joining a number of other international BPFS companies that have set up a base in Birmingham. German banking giant Deutsche Bank has drastically grown its operations in the city – while US architect Gensler and law firm Hogan Lovells, which is headquartered in London and the US, have also recently located in Birmingham.

Alex Tross, associate director of office agency at property consultancy Lambert Smith Hampton in Birmingham, welcomed the HSBC news.

He said: “This is a major boost for the city and continues the inward investment trend set by Deutsche Bank and HS2 last year.

“That the city is able to continue to attract occupiers of this scale will work well with the speculative office developments currently on the drawing board.”