UK REIT British Land and the Blackstone Group said on Tuesday that they plan to construct a new building at London's Broadgate Estate for existing tenant UBS.

Bluebutton Properties, the 50:50 joint venture of British Land and Blackstone owning the Broadgate Estate, has entered into exclusive non-binding terms to develop a new scheme for UBS at site 4 and 6 of Broadgate. British Land said 'there can be no certainty that a binding deal will be signed' and a further announcement would be made in due course.

The Broadgate Estate is one of the City of London's premier office estates, consisting of 16 buildings covering 4.4 million sq ft (409,000 m2) of Grade A office, retail and leisure space. In November 2009, British Land sold a 50% stake in the £3.5 bn redevelopment project to Blackstone.

Most properties at Broadgate were securitised in 2005 when British Land's subsidiary Broadgate Financing issued £2.08 bn of bonds supported by the cash flows from certain properties within the Broadgate Estate.