Demolition of the existing buildings has already begun and is expected to completed by April 2012. The proposed new offices are scheduled to be completed by the end of 2014.
Under the terms of the agreement UBS has agreed to delay the point at which it can break the lease on the offices until the middle of 2016, which would ensure that the joint venture receives a further £74 million in rent. UBS will also benefit from a rent-free period of 18 months.
"This is another significant milestone in the development of the new UBS building at 5 Broadgate and a real boost for the City," said Tim Roberts, head of office for British Land.
'The Broadgate estate continues to evolve to serve the needs of a range of City occupiers and the 30,000 people based there," said Roberts.
