Fluor to Relocate UK Headquarters to SEGRO Park
- Nov 25, 2008
Fluor Corp., a global construction and engineering firm, has revealed plans to relocate its United Kingdom headquarters to a SEGRO-owned business park, IQ Farnborough, in Hamphshire, England.SEGRO, a U.K. REIT, said the prelease for 210,000 square feet could be the largest this year in the U.K.’s South East office market and possibly the largest in the Thames Valley since 2001. Financial terms of the deal were not made public. The plan calls for Fluor, based in Irving, Texas, to take a total of 210,000 square feet in four buildings to be constructed at the business park. Fluor will own one 76,000-square-foot building and rent the remaining 134,000 square feet in the other three on long-term leases. Construction will begin in January with phased completion of the four buildings coming during the first half of 2010. Fluor has had its U.K. headquarters in nearby Camberley, Surrey, since the mid-1980s and has been operating in the United Kingdom for more than 50 years. The company, which provides services for clients around the world in engineering, procurement, construction, operations, maintenance and project management, had revenues of $16.7 billion in 2007. There are about 1,800 employees based in the U.K., most of them part of the firm’s oil and gas team, a Fluor spokesperson told CPN. The spokesperson said the company decided to own one building and lease the rest for 15 years to give it flexibility to sublet some if it doesn’t need all the space in the future. The spokesman said Fluor has used a similar setup at its Camberley site. However, the company expects to occupy all 210,000 square feet when it moves in to IQ Farnborough during 2010. IQ Farnborough is a work/live development owned by SEGRO, a provider of flexible business space in Europe. It is located about 35 minutes southwest of London and adjacent to the Farnborough airport. Many U.K.-based and international companies are located at Farnborough. “We will be within a short distance of direct train lines from London, which will help us with recruiting. There are amenities close by to serve the needs of our employees and clients like the town center, hotels, restaurants and day care facilities,” Fluor chairman & CEO Alan Boeckmann said in a statement. Boeckmann added that Fluor expected to significantly reduce its energy consumption at the new site by using new systems and technologies. “We’re shooting for a 20 to 30 percent reduction,” the Fluor spokesperson told CPN. “A commitment of this scale under current market conditions demonstrates that IQ Farnborough is a first class site and illustrates the benefits that a mixed-use business environment of this quality can offer a company of Fluor’s stature,” Ian Sutcliffe, SEGRO’s U.K. managing director, said in a SEGRO release. The leasing agents for IQ Farnborough are Jones Lane LaSalle, Cushman and Wakefield Inc. and Hollis Hockley. In other Fluor news, the company also announced this week that it had acquired two private engineering companies in Europe. UNEC Engineering N.V. of Antwerp, Belgium, and European de Ingenieria y Aesoramiento (E.I.A.) of Tarragona, Spain, will become part of the European operations of Fluor’s Global Services business group. Financial terms of the acquisitions were not disclosed. Between them, the companies have 250 employees. Headquartered in the U.K., SEGRO has operations in 10 countries, serving approximately 1,700 clients. As of June 30, the REIT had about $7.9 billion in property assets and an annual rent roll of approximately $446.4 million.