Blackstone has been visited by the United Kingdom prime minister and the United States ambassador as it broke ground on its new London headquarters, underlining the perceived political importance of the private equity giant's commitment in the capital.
Attending the formal groundbreaking ceremony at Berkeley Square, was Prime Minister Rishi Sunak, the United States Ambassador to the United Kingdom Jane Hartley, and Blackstone chairman, chief executive and co-founder Stephen Schwarzman.
Blackstone plans to occupy the landmark 226,000-square-foot 10-floor building, which is nearly two-thirds larger than its existing office, also on the square in London's West End. The development is being led by London commercial property developer Co-re and architect AHMM.
Blackstone has said the headquarters reaffirms its long-term commitment to the United Kingdom and Europe. The firm has doubled its headcount in London over the past three years to more than 650 people working across private equity, real estate and private credit.
It is a major United Kingdom investor, estimating it has spent more than £70 billion across over 100 businesses and investments in the past 20 years. It says this has created over 35,000 jobs across affordable housing, tourism, financial services, life sciences and logistics. Investments include Bourne Leisure, Merlin Entertainments, Sage Homes, Autolus Therapeutics and Mileway, its European logistics platform.
Construction is scheduled to be completed in 2028. The expanded headquarters will include approximately 14,000 square foot of ground-floor retail and redeveloped public areas surrounding the site at the south end of the square.
Prime Minister Sunak, United States Ambassador Hartley and Schwarzman were joined by the architects and an engineering apprentice to hear about the sustainable construction methods used to ensure the building can be adapted and repurposed in future.
The building is targeting high-level sustainability criteria, including: BREEAM Outstanding, the standard United Kingdom sustainability rating system; WELL Platinum, a well-being metric; the in-use energy efficency rating NABERS 5 Star; and an energy performance certificate rated A. It will include recycled steel from the original building and a biodiverse outdoor terrace. It will target renewable energy through ground-source heat pumps and solar panels.
Schwarzman said in a statement: “This is a great day for Blackstone. We’re proud to be one of the largest foreign investors in the UK and I am delighted to celebrate our next phase of growth after more than 20 years at Berkeley Square. Our expanded headquarters at the redeveloped Lansdowne House will be an important part of our story as we continue to build great companies across Europe.”
Sunak, added: “Blackstone’s new European headquarters is a vote of confidence in the British economy, proof that our plan is working. We’ve already halved inflation, debt is forecast to fall, and – with the help of Britain’s proud financial sector, we’re on course to grow the economy.”
Bradley Baker, chief executive of Co-re, said: “Blackstone are providing a huge boost to the London and West End economy through their major investment in Mayfair. At their new headquarters they will enjoy a building that raises the standard of future office design and gives a new sense of place to the historic Berkeley Square.”
Blackstone confirmed in 2022 it would move from the 75,000 square feet it occupies at 40 Berkeley Square as it continued major expansion in the United Kingdom.
Knight Frank advised the building owner Audley Group and Co-re.