US bank JP Morgan is buying a landmark office building in Dublin in a significant boost for the Irish capital following the Brexit vote.
The new premises will be able to house 1,000 staff – double the number of personnel the US bank currently employs in Dublin. The move is regarded as the first major expansion in Ireland by a financial services firm since the UK’s referendum.
The bank is reportedly paying €125m for the building at the flagship Capital Dock development in Dublin’s docklands, which is due to be completed in the latter part of 2018.
The US bank said earlier this month that Dublin would be used as one of three main bases in the EU from which it will carry out the activities it used to carry out in London.
“Given the momentum of our local businesses, this new building gives us room to grow and some flexibility within the European Union,” said Carin Bryans, senior country officer for JP Morgan in Ireland, as the new office deal was announced. “Dublin has the vibrant business and technology communities that suit a global firm like ours.”
The announcement coincided with a report in the Financial Times that JP Morgan intends to hire more staff in Dublin for its custody operations, which look after the investments of major investors, hedge funds and big companies.
James Kenny, JP Morgan’s head of investor services, told the FT that the bank intended to hire a “significant” number of staff in Dublin to expand the custody business.
“Growth plans are driving our real estate plan,” Kenny said.
Earlier this month, the bank warned it might have to move staff – possibly as many as 1,000 from the City of London – as a result of Brexit. At the time Daniel Pinto, JP Morgan’s head of investment banking, said: “We are going to use the three banks we already have in Europe as the anchors for our operations … We will have to move hundreds of people in the short term to be ready for day one, when negotiations finish, and then we will look at the longer-term numbers”.
JP Morgan employs 16,000 people across the UK, with about 11,000 in the City, 4,000 in Bournemouth – it is the biggest private-sector employer in Dorset – with the remainder in Scotland. In the run up to the referendum, the bank had warned up to 4,000 roles could be lost.
Other banks are also preparing to bulk up their businesses outside London, although it is not thought activities will fragment across the EU.
Richard Gnodde, the head of European operations at Goldman Sachs, has said he would need more people in Madrid, Milan, Paris and other EU centres. Deutsche Bank has said up to 4,000 jobs from its UK workforce of 9,000 could be moved to Frankfurt and other locations in the EU because of uncertainty about Britain’s relationship with the remaining 27 countries in the EU. HSBC has said 1,000 roles will go to Paris.
This article was written by Jill Treanor, for theguardian.com on Monday 15th May 2017 12.50 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010