The Chamberlain News

Jobs boost as HSBC announces relocation from London to Arena Central

HSBC bank is to move a major part of its worldwide operation to Birmingham.

The national head office of its new ring-fenced bank serving personal and business customers will be relocated from London to the Arena Central development off Broad Street.

The move will involve bringing 1,000 jobs to Birmingham from 2017.

HSBC’s decision to create the head office in Birmingham follows a review by the bank of a number of possible 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 16 million 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.

Birmingham city council leader Sir Albert Bore commented:

HSBC joins a number of global companies that want to be a part of Birmingham’s accelerating growth and strong economic prospects.

Birmingham is changing for the better. We are investing heavily in the city’s future with major projects including the redevelopment of Birmingham New Street station due to complete this year and other transformational schemes now underway.

A local network of public and private sector partners is forming entrepreneurial partnerships, sharing ideas and implementing ambitious plans for the future of the city.

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.

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. It is the largest property deal to take place in Birmingham since 2002.

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.

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 economic revival of Greater Birmingham is gathering pace, led by highly valuable industries such as financial services. It underlines the city’s position as a UK business hub and a prime location for professionals building their careers. HSBC’s new head office at a site within Birmingham’s Enterprise Zone will provide a tangible reminder of the scale of investment we are now attracting into the region.

Greater Birmingham is the UK’s leading centre for financial services outside London. It has the largest business, professional and financial services (BPS) industry in the country, with more than 21,000 companies employing some 220,000 people in the region. The industry generates £15 billion annually for the local economy.

The firm will be joining a number of other international BPS 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.

Phil Miller, chief executive of Arena Central developers Miller Developments, added:

HSBC’s commitment to Birmingham is great news for the city and their choice of 2 Arena Central is a tremendous boost for the development. This will enable us to push ahead with realising the full scale of the scheme and deliver HSBC’s requirements and our vision for this key site in the heart of the Enterprise Zone. 

The city’s thriving business environment is attracting an influx of young professionals to the city. Some 5,500 Londoners in their thirties moved to Birmingham last year alone – the highest of any regional city – and Birmingham is recognised by the Mercer Quality of Life Index as having the best of quality of life of any UK city outside London.