Sainsbury's plans head office move to King's Cross

Sainsbury’s will relocate about 2,000 staff to a new mixed-use scheme at King’s Cross in early 2011. The relocation will significantly reduced the supermarket's central office costs. It will also open a supermarket on the site, which it chose because of the proximity to its current office and its environmental credentials.

Sainsbury's chief executive Justin King said: "We are pleased to be part of this new development and the regeneration of this area and were attracted to the site as its outstanding environmental credentials support our aim to reduce energy use across our business."

The supermarket’s lease on its 330,000 sq ft (30,655 sq m) building at 33 Holborn expires in 2025. It is thought to be paying a rent of between£52 and£55 per sq ft, much more than its rivals Tesco in Cheshunt, Hertfordshire and Asda in Leeds.

The development at King's Cross aims to deliver carbon savings through energy efficient building design, fabric and technology; the installation of distributed combined heat and power energy centres; and renewable energy technologies. These activities are already being tested at Sainsbury's store network.

Sainsbury’s appointed property agency Cushman & Wakefield last year to assess the costs of a move and it has been considering possible sites across the UK.

Argent’s development includes a 7.9 million sq ft (733,910 sq m) mixed-use scheme at a 67 acre brownfield site to the north of King’s Cross and St Pancras stations. London & Continental Railways and DHL-Exel own the land.

The development also includes roof-mounted wind turbines, photovoltaics, ground source heat pumps and solar thermal systems for generating hot water. When combined, these measures are likely to reduce site carbon emissions by some 40 per cent, compared to industry benchmarks.