NEW YORK CITY-After mulling a move to anchor 3 World Trade Center in Lower Manhattan, investment bank UBS AG is staying put in Stamford, CT. With the help of financial incentives, the company signed a five-year agreement with the State of Connecticut to keep 2,000 employees in the state.
The decision comes on the heels of a review of the bank’s real estate requirements in the Tri-State area, and will include minor staff relocations between Stamford and its two current Manhattan locations at 1285 Ave. of the Americas and 299 Park Ave.
“We are pleased that we will maintain a substantial presence in Connecticut,” says Phil Lofts, CEO of UBS Group Americas, in a statement. “The partnership between UBS and the state has helped build stronger communities and exemplified both parties’ commitment to the economic vitality of the region,” he says. The company’s 103,000-square-foot trading floor is among one of the largest in the local area.
The agreement also follows UBS’ announcement to eliminate $2 billion in Swiss francs from its budget by cutting operating expenses and reducing 3,500 jobs on Tuesday afternoon. The restructuring changes reflect $400 million in personnel savings and $150 million in real estate. Lofts explains that UBS’ determination should help the company during an uncertain market period. “This decision enables our employees to continue to support the local communities where they live and work, which is especially important in light of the challenging economic climate,” he says, in a statement.
Given its decision to stay in Connecticut, UBS will invest in infrastructure, employee training and technology at the Stamford location by offsetting a portion of these investments with a $20-million forgivable loan from the state. In addition, if UBS adds more jobs in the future, the company will be eligible for an additional $7 million in forgivable loans, based on increments of 250 new jobs created.
Governor Dannel P. Malloy says the deal further reaffirms UBS’ commitment to Stamford and to the state as a whole. “UBS is an important part of Connecticut’s financial services landscape, not only in terms of the number of people they employ but in the enormous financial contributions they make to the local and state economies,” Malloy says, adding that the company’s Stamford presence has developed one of the “strongest financial hubs in the world” and is “critical” to the region. The insurance and financial services sector employed 193,500 people as of 2009, making it 9% of Connecticut’s total workforce, according to state data.
A spokesman for Silverstein Properties Inc., which is developing 3 World Trade, tells GlobeSt.com that UBS is no longer considering New York City for a new corporate headquarters.
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