Citi’s London office overhaul costs hit $1.5 billion

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By Iain Withers

LONDON (Reuters) – Wall Street bank Citigroup’s bill for refitting its tower in London has risen to $1.5 billion (1.1 billion pounds), the company told Reuters, highlighting the challenges of modernising workplaces to attract employees back to offices.

The cost, confirmed by Citi for the first time, is approaching the 1.2 billion pounds ($1.63 billion) the U.S. bank paid to acquire the building in 2019.

The budget was increased after Citi expanded its workforce and decided to upgrade additional space, a company executive told Reuters, without disclosing the original budget.

Citi said the investment demonstrates 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, said Edward Skyler, Citi’s Head of Enterprise Services and Public Affairs.

A Citi spokesperson confirmed that the 1.1 billion pound investment in its London office is the same figure referenced by the UK government in its statement on Saturday announcing commitments from U.S. companies in Britain.

Citi declined to specify how much of the budget has been spent so far on the project, which began in 2022 and is expected to finish next year.

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 that the project’s costs had exceeded 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.

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 announced plans to overhaul a nearby 45-floor tower being vacated by HSBC.

Citi’s rival JPMorgan 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)

($1 = 0.7377 pounds)

(Reporting by Iain Withers in London; Editing by Matthew Lewis and Louise Heavens)