Strategy to manage rapid growth.
Orsted (formerly known as DONG Energy) had seen its headcount increase from less than 10 employees to over 400 in just eight years.
Strategy to manage rapid growth.
Orsted (formerly known as DONG Energy) had seen its headcount increase from less than 10 employees to over 400 in just eight years.
Because the business occupied two different sites, various short-term subleases had been acquired to provide expansion space under a uniform block date. This would help facilitate its relocation to a new HQ some 18 months ahead of lease expiry since headcount in London was still expected to grow significantly by and beyond its existing lease expiry dates.
The highly competitive terms negotiated by McCalmont-Woods on a new 81,000 sq ft award winning building produced an outstanding £22M savings for this global renewable energy company.
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We are delighted to have leased this new state-of-the-art office. The new office will give us a great opportunity to bring together all 400 of our London-based staff, with all the benefits that improved collaboration can bring.
Orsted (formerly known as DONG Energy) is a renewable energy company headquartered in Denmark employing 5,600 people including over 900 in the UK. Its shares are listed on Nasdaq Copenhagen and in 2017 the group’s revenue was DKK 59.5 bn (EUR 8.0 bn).
McCalmont-Woods was tasked with developing a property strategy for DONG Energy in London which recognised that the business occupied circa 50,000 sq ft under six leases due to expire within a short 2-3 year timespan and which leases were all held from different landlords.
With headcount in London expected to grow significantly beyond the existing lease expiry dates it was important to identify a new headquarters building that would be capable of meeting the businesses’ future growth needs and which was available to lease within the timescale identified. In addition the new HQ building would also be required to meet various exacting technical, environmental and sustainability requirements in keeping with the businesses’ corporate image and standards.
Against the backdrop of an increasingly tight London office market characterised by low levels of supply and high levels of occupier demand, McCalmont-Woods was successful in identifying and securing 81,000 sq ft Grade A offices for Orsted in an award-winning building at 5 Howick Place, Victoria, SW1 some 18 months ahead of lease expiry, on highly competitive terms.
Brent Cheshire, UK Country Chairman
“We are delighted to have leased this new state-of-the art office. This reflects the rapid growth of our business and our commitment to the UK where we have invested over £5 billion in the last decade. The new office space will give us a great opportunity to bring together all 400 of our London-based staff, with all the benefits that improved collaboration can bring. Securing this accommodation also ensures that we remain in Central London, close to our key Government and business stakeholders.”