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Citi to spend $1.5 billion on Canary Wharf tower project

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Budget was increased to accomodate larger workforce -

executive

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Revamp includes new gardens, amenities, and energy

upgrades

By Iain Withers

LONDON, Sept 14 (Reuters) - Wall Street bank Citigroup's ( C/PN )

bill for refitting its tower in London has risen to $1.5

billion (1.1 billion pounds), the company told Reuters,

highlighting the high costs of overhauling outdated workplaces

as businesses seek to attract staff back into the office.

The figure, which Citi is confirming for the first time, is

close to the 1.2 billion pounds the bank paid to buy the

42-storey building in the Canary Wharf financial district in

2019.

The bank's budget for the project was increased after it

decided to upgrade and occupy more space in the tower to fit an

expanded workforce, a Citi executive told Reuters, declining to

disclose the original budget.

Citi said the investment highlighted the company's

commitment to Britain, where it employs 14,000 people, including

10,000 in London.

Citi CEO Jane Fraser will visit Britain this week to coincide

with U.S. President Donald Trump's state visit, alongside other

U.S. business leaders for meetings with Trump and British

ministers, the executive said.

The overhaul of the tower at 25 Canada Square includes

adding new gardens and amenities, linking teams across

multi-level "villages," and upgrading energy and water systems.

The Financial Times reported in January this year that the

total cost of the project had topped 1 billion pounds.

Under CEO Fraser, Citi has bucked the wider Wall Street

trend by sticking to a hybrid working policy, allowing staff to

work up to two days a week from home.

The bank said London-based staff would begin to move in from

the second quarter of next year. The project was originally

targeting completion in 2025, but Citi said it was on time

according to its latest schedule.

After the COVID-19 pandemic led to more working from home,

office property prices were pummelled and property owners were

forced to rethink older, out-of-town buildings, with business

districts like London's Canary Wharf particularly hard-hit.

Landlord Canary Wharf Group has unveiled plans to overhaul a

nearby 45-floor tower being vacated by HSBC.

Citi's rival JPMorgan ( JPM ) is assessing options for its own

tower in Canary Wharf, including potentially revamping the

office, building a new tower nearby, or relocating to central

London, Reuters previously reported.

(1 British pound = $1.3556)