West Bromwich Building Society in move U-turn

The society has dramatically ruled out a move to The Waterfront, near Merry Hill shopping centre, which had appeared to be a done deal just two months ago.

Instead bosses will pay to build a new base in West Bromwich, at the Providence Place development, near the BT regional business centre off All Saints Way, it was announced today.

It is believed a building of the scale required for its 500 staff, and to accommodate the most up-to-date technology for a financial services company, would cost more than £10 million.

The news was today welcomed by business and council bosses in the borough.

The society said that the initial outline terms of the intended move to the Point North development were "no longer feasible", but refused to be drawn on the reasons why due to commercial confidentiality.

It has now reached an agreement with Sandwell Council and said building a new office at Providence Place was the "better solution for the society's members and its people".

Chief executive Jonathan Westhoff, today said it was hoped for work to start on the build as soon as possible with a view to moving into the site in late 2014.

"I think for any borough in this area at the moment to either gain or retain a business of our size is clearly quite important," he said.

"I think we would all agree that given the regeneration that is going on in West Bromwich around Providence Place, we are perhaps merely adding to that revitalisation of the town. We will start work as soon as we can physically be able to do it."

The initial news of the move was branded an "utter disgrace" by Sandwell Council leader Darren Cooper, who was delighted with today's announcement.

He said: "I am extremely pleased The West Brom has decided to review its decision and they have decided to stay in their spiritual home. It further adds to the success story building around the town.

"It means one of our key businesses is staying in the area and adding to the ongoing development of West Bromwich."

Meanwhile the West Bromwich unveiled its latest half-year figures today, revealing its losses had widened to £6.7m from £5m a year ago but saying its core finances were stronger.

The society said it was continuing to make progress with its Back to Basics strategy "against a backdrop of general economic uncertainty and challenging trading conditions". It also attracted 19,000 new customers, contributing to the society seeing £1 billion pumped into savings accounts over the six months to the end of September.

Mr Westhoff added: "We are making satisfactory progress against our Back to Basics strategy and fulfilling our commitment to members to provide a secure home for their savings and support their aspirations for home ownership."

The Express & Star revealed in September the society was in talks to move from its iconic West Bromwich High Street home to the Point North development.

Mr Westhoff then said it had agreed terms with Richardsons Capital to lease 70,000 sq ft of space at the six-tier canalside block. But now it will stop in the town it has been based in for 163 years, taking over land owned by Sandwell Council.

It is understood the board of directors reversed their decision on Wednesday.

Sandwell's jobs boss, Councillor Derek Rowley added: "It is great news. There are hundreds of people working in the head office.

"The West Brom is synonymous with West Bromwich and should never have even considered going out of the borough in the first place."

The announcement has also been welcomed by Sandwell Chamber of Commerce boss Ninder Johal.

He said: "It's fantastic news that they have decided to stay in the place where they were born, and the place the business is named after."

By Alex Homer