IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Google to open office at London's Kings Cross

Internet giant to cross capital and open new digs at Kings Cross.

Google logo

Google is planning to open a new 1 billion corporate HQ at Kings Cross Central.

The internet giant has purchased a 2.4 acre plot at the site, one of London's biggest regeneration schemes, where it will build a 1 million square foot office, the property developers behind the project have confirmed.

A separate source with knowledge of the deal said Google was investing 650 million to buy and develop the site. The office building will be worth up to 1 billion when it is finished in 2016, a second source said.

This is a big investment by Google.

"This is a big investment by Google, we're committing further to the UK - where computing and the web were invented. It's good news for Google, for London and for the UK," Google's vice president for Northern and Central Europe, Matt Brittin, said in a statement.

Google will move from its current offices in the UK capital's Victoria and Holborn districts in 2016 when the building is completed.

Construction on the site will start in late 2013 and the building will range in height from 7 to 11 storeys.

Kings Cross Central, which sits on a former fish, coal and grain goods yard to the north of the city, spans 67 acres and will contain homes, offices and shops. It is being built by the Kings Cross Central Limited Partnership which includes developer Argent Group.

Google's new neighbors when it moves will include the real estate arm of French bank BNP Paribas, as well as a cultural and education centre managed by the Aga Khan, spiritual leader of Ismaili Muslims.

Google has traditionally leased its overseas offices but in the past two years has purchased premises in Paris, Dublin, and now London, its filings show.

As of December 31, 2011, Google has $44.6 billion of cash, with $21.2 billion of that held offshore, according to its 2011 annual report. If the funds held offshore were repatriated, they would be subject to US taxes, Google said.

Tax campaigner and accountant Richard Murphy said the decision to buy property rather than rent was likely "tax motivated" and driven by the fact the company cannot repatriate the cash to the US without paying a fat tax bill.

"If you're not going to send it back to the parent company to repurchase its shares, which is the normal route for a US corporation sitting on a pile of cash, what else are you going to do with it?" he said

Google declined to comment on the tax issue.

Office landlords see Google as a prized tenant as its presence is expected to draw other technology companies - especially small start-ups - and help to bump up rents.

Featured Resources

The state of Salesforce: Future of business

Three articles that look forward into the changing state of Salesforce and the future of business

Free Download

The mighty struggle to migrate SAP to the cloud may be over

A simplified and unified approach to delivering Enterprise Transformation in the cloud

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

The Total Economic Impact™ Of IBM FlashSystem

Cost savings and business benefits enabled by FlashSystem

Free Download

Recommended

Google reveals new office in Atlanta and $1 million in funding for local communities
Careers & training

Google reveals new office in Atlanta and $1 million in funding for local communities

28 Jul 2022
Hackers hiding malicious links in top Google search results, researchers warn
malware

Hackers hiding malicious links in top Google search results, researchers warn

21 Jul 2022
Gmail vs Outlook.com: Which one is better?
email providers

Gmail vs Outlook.com: Which one is better?

13 Jul 2022
Google backs Thales' public cloud services firm
public cloud

Google backs Thales' public cloud services firm

30 Jun 2022

Most Popular

How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

29 Jul 2022
Samsung proposes 11 Texas semiconductor plants worth $191 billion
Hardware

Samsung proposes 11 Texas semiconductor plants worth $191 billion

21 Jul 2022
Should you take your password manager off the internet?
Sponsored

Should you take your password manager off the internet?

28 Jul 2022