Electricity supplier Green Network Energy will relocate its offices from the City of London to the Renaissance building in Croydon.
The Italian energy company will move out of its current offices on Paternoster Square, St. Paul’s, and almost triple its office size. It has struck a deal with M&G Real Estate to take around 28,000 sq ft at the Renaissance office block, bringing the building to 100% let. Green Energy occupies around 10,000 sq ft at Oxford Properties’ St. Martin’s Court, the office building adjacent to St. Paul’s cathedral and CBRE’s headquarters in the City.
The company, which became an electricity and gas supplier in the UK in 2016, is seeking to significantly expand its business capacity. Its decision to move to Croydon demonstrates the pull of the south London town, which benefits from good transport links and far cheaper rents than central London. “I think we will see more and more of these deals where an occupier moves out of central London to Croydon,” said one agent. “Croydon is less than 10 minutes away from central London and it’s significantly cheaper. Prime rents in Croydon are around £35/sq ft – half the cost of the City. It’s a bargain.”
According to Savills, prime City of London office rents in 2017 were £75/sq. ft. Grade A Croydon office schemes are up to 78% cheaper than their West End counterparts, Savills data shows. The five-storey Renaissance, developed in 2013 by Abstract Securities, has 100,000 sq ft of grade A office space and is next to East Croydon Station, opposite Ruskin Square and Boxpark. The building’s other occupiers are Mott MacDonald, the Pension Protection Fund and software company Solium.
Croydon is one of the most accessible locations in Greater London and the South East. East Croydon train station provides fast regular services to London Bridge, Victoria, Gatwick Airport and the South Coast.
Knight Frank and Sinclair Clark are leasing agents at Renaissance. All the parties declined to comment.