When Swiss lender UBS AG called off negotiations to lease space at the World Trade Center as a result of disappointing second-quarter income earlier this month, it was reported the company was looking in other areas of the city. Now, the Wall Street Journal has reported that UBS is instead maintaining its flagship trading floor and other operations across Connecticut after the state agreed to provide the Swiss bank with a $20 million loan over a five-year period.
Gov. Dannel Malloy said that the bank must maintain 2,000 jobs in Connecticut and spend the so-called forgivable loan over that period for infrastructure expenses to be eligible for the incentive. UBS’ prospective move to New York would have cost the state $70 million in annual income, he said.
The Zurich-based bank, which had been a leading candidate to anchor Larry Silverstein’s 3 World Trade Center, was said to have been at a competitive disadvantage when it came to attracting talent as its offices are located an hour from Manhattan.
UBS’ withdrawal won’t negatively affect the outlook for leasing Trade Center offices, Bud Perrone, a Silverstein spokesperson said at the time. [WSJ]