Intel has instructed a commercial real estate firm to sell its European headquarters in the UK. The purpose-built offices in Swindon became Intel’s Euro HQ in 1982 and consist of 187,000 square feet of office space on a 12.87-acre site, according to local media reports.
An Intel spokesperson told the local newspaper that the iconic chip firm is “shifting our global real estate strategy to focus on fewer, more populated locations and eliminate underutilized space.”
We aren’t surprised to see this move after Intel’s recent announcement that it will exit or reduce its global real estate footprint by two-thirds. However, the writing has been on the wall for this particular HQ for several months, with talk of Intel leaving Swindon first coming to light last year. At the time, it insisted it would retain a presence in the labs and office space, but no new premises were picked.
Looking closer at the sale details, it seems like Intel and its approximately 1,000 local staff will continue to utilize the extensive office space in Swindon until at least 2025. While it sells the extensive commercial property and surrounding land for £9 million ($12 million), it wants to agree to a leaseback at £1.9 million per annum ($2.5 million a year) with any new owner. According to our understanding of the real estate terminology, it wants this agreement to last up to 18 months, with the option to vacate the premises at any date after January 31, 2025, after giving three months’ notice.
Colliers, the estate agent managing the sale with ‘rolling break’ leaseback, says the site offers “numerous value-add development opportunities. “The property is just half a mile south of the old town center and has great access to motorways, shops, cafes, and restaurants. The agency also highlights possibilities for the new owner, as it says the site has “strong residential and alternative use potential.”
With Intel’s newfound dedication to (and need for) thrift, it might not continue to maintain premises for UK staff for long. Its Europe-based staff might be asked to go to Intel’s offices in Ireland or Germany if and when their physical presence is required. At the time of writing, the effect of property sales on Intel’s Swindon-based personnel remains to be seen.
