HSBC headquarters to relocate from London to Birmingham

The bank is in "advanced negotiations" for a 250-year lease on a new office at Arena Central in Birmingham city centre

The headquarters of the personal and business arm of HSBC bank will relocate from London to Birmingham, it has been announced.

The bank said about 1,000 jobs will be transferred from the UK capital as part of the move, starting in mid-2017.

Antonio Simoes, of HSBC, described Birmingham as a "growing city" with the "expertise and infrastructure" to support the bank.

Birmingham City Council and Marketing Birmingham both support the move.

The bank is in "advanced negotiations" for a 250-year lease on a new office at Arena Central in the city centre enterprise zone, the city council said.

'Supporting employees'

Arena Central will be built on a 1.5m sq ft (139,366 sq m) site occupied by the Alpha Tower and the Crowne Plaza Hotel.

The council said development of the site is expected to start in June.

Analysis

Peter Plisner - BBC Midlands business correspondent

Forget about the so called "Northern Powerhouse", more and more companies considering expansion outside the London and southeast are looking seriously at Birmingham.

For years, the second city has been punching below its weight, but now it appears to be attracting some major companies.

Already Deutsche Bank has chosen Birmingham for its recent expansion in trading operations and HS2 Ltd has sited its construction HQ here.

Arena Central is just one of a series of planned developments in the city.

Others, including Paradise Circus and the redevelopment of Snow Hill, should attract even more high-profile companies.

Birmingham was chosen following a review of "a number of possible head office locations," the bank said.

HSBC said it has consulted with the unions and is committed to "supporting employees throughout this process".

The first branch of the Birmingham and Midland Bank opened in the city in 1836. The bank was acquired by HSBC in 1992.

HSBC history

• 1836: Birmingham and Midland Bank was established by Charles Geach in Union Street, Birmingham

• 1851: The bank buys the Stourbridge Old Bank, its first branch

• 1891: First London address after buying the Central Bank of London

• 1898: HQ moves to Threadneedle Street, London.

• 1930: New HQ, designed by Sir Edwin Lutyens opens in London

• 1989: Launches the UK's first telephone bank

• 1992: Midland Bank became a wholly owned member of the HSBC group