Google buys 2.4-acre plot for $1.6B for London office space
updated 01:18 pm EST, Fri January 18, 2013
Construction to start late 2013, finishing in 2016
Google will be building a new UK headquarters in Kings Cross which could eventually cost £1 billion ($1.6 billion) when completed. A 2.4-acre plot of land in one of London's largest redevelopment plans will play host to the construction of a one million square foot office for the search company, said to be completed some time in 2016.
Currently, Google operates its UK operation from the Victoria and Holborn districts, both of which will move into the Kings Cross Central development once it has been constructed, reports Reuters. Work will begin later this year on the building, which will range in height from 7 to 11 storeys. The company has traditionally leased office space for overseas locations, but has since bought office space in Paris and Dublin in the last two years, with London being the company's latest acquisition.
Accountant and tax consultant Richard Murphy claimed that the property purchase was likely to be "tax motivated," allowing Google to hold its cash offshore in some form without it being repatriated and subject to US taxes. The addition of permanent Google offices is also useful to landlords in the area, as it could encourage other technology companies to move to the area, and in turn raise rents on leaseable office space.
