Bid to stop UBS' Europe HQ plans in London fails

The logo of Swiss Bank UBS is pictured on the roof of the company's headquarters in Zurich February 8, 2011.

LONDON (Reuters) - British Land and Blackstone Group's plan to build UBS' new European headquarters in central London will go ahead after a bid to preserve the location as a heritage site failed.

"The Secretary of State (Jeremy Hunt) ... considers that Broadgate does not meet the stringent criteria of historic or architectural interest required to be added to the statutory list," the Department for Culture, Media and Sport said in a letter to preservation body English Heritage.

British Land and Blackstone's 850 million pound plan to build UBS' new offices in London's City financial district was put on hold after English Heritage recommended Broadgate for a Grade II* listing on June 3.

The listing, if successful, would have protected the site from demolition, and included two buildings British Land had hoped to clear for its redevelopment project.

The decision means British Land and Blackstone can proceed with their plans to UBS' new European headquarters.

An English Heritage spokeswoman told Reuters that lodging an appeal against the decision was not within its remit. She said there was a 28-day period in which other parties could request a review of the decision if they had "significant new evidence."

At 1:54 p.m., shares in British Land were up 1 percent at 595 pence, outperforming the broader index of property stocks, which was 0.2 percent higher. Blackstone's shares closed at $17.02 on Tuesday in New York.

"I am delighted by today's decision as it allows Broadgate to continue to evolve as a sustainable and flexible office location that will meet the future needs of occupiers whilst maintaining the sense of space and place for which it is rightly renowned around the globe," British Land's Chief Executive Chris Grigg said in a statement.

"With the decision made today by Jeremy Hunt, the Government has also sent out a message loud and clear to the world that the UK is open for business," he said.

(Reporting by Brenda Goh; Editing by Andrew Macdonald)