The deal to bring the UK personal and business banking operations of HSBC to Birmingham has been formally signed.
Arena Central Developments, the joint venture company behind the Arena Central development in Broad Street, has sealed what is said to be the biggest Birmingham property deal at 210,000 sq ft since 2002.
Ring-fencing legislation, which has prompted the move out of Canary Wharf in London, comes into force on January 1, 2019 and the bank has purchased 2 Arena Central site on a 250-year lease.
Subject to securing planning permission at the end of April, work will start this summer and will be handed over to HSBC in mid-2017 for occupation from early 2018.
Designed by renowned architect Ken Shuttleworth of Make Architects, the building has the capacity to accommodate up to 2,500 people and is believed to be the first in Birmingham to be constructed to LEED (Leadership in Environmental and Energy Design) Gold accreditation.
Birmingham is already home to more than 2,500 HSBC employees and around 1,000 head office roles will move from London to Birmingham before the end of 2018.
The 9.2 acre Arena Central site will eventually comprise office buildings, residential blocks and a Holiday Inn Express hotel.
It is being development Arena Central Developments which is a joint venture between Miller Developments and Pro Vinci Asset Management.
Phil Miller, chief executive Miller Developments, said: "The two teams have worked tirelessly to deliver what is the most significant deal in Birmingham for over a decade and will redefine the westside of Birmingham.
"This is great news for both Birmingham and for Arena Central and builds on the city’s burgeoning reputation as a leading centre for professional and financial services operators."
Graham Canvin, head of corporate real estate at HSBC UK, added: "We want to be the bank of choice in the UK and creating our ring-fenced bank head office in Birmingham gets us a step closer to that ambition for our 16 million personal and business customers."
Arena Central Developments was advised by Pinsent Masons, GVA and Colliers. HSBC was advised by Eversheds and CBRE and Squire Patton Boggs and GBR Phoenix Beard acted for Birmingham City Council.