Oryx Real Estate Partners has signed American multinational footwear and clothing company Skechers for a 47,000-square-foot headquarters in St Albans, one of the largest office lettings in the Hertfordshire city, CoStar News can reveal.
The transaction sees Skechers nearly triple its footprint at Centrium Business Park by signing for 30,000 square feet of offices at the recently refurbished CT2 building, which is a gateway into the main street towards the cathedral. It has also recommitted to its offices at the neighbouring CT3 building comprising 17,000 square feet, which it has occupied since 2017.
Skechers has signed leases through to 2037 for Buildings 2 and 3. Following a full category-A and category-B fit-out, the company is expected to occupy both buildings from next year.
Oryx and Trinova gained consent last year for the redevelopment of the four-floor CT2 at Centrium business park after it was vacated by Premier Foods. The redevelopment provides for two external private terraces, a facade with full height glazing and additional lettable floor area in what the partners have said is St Albans’ most sustainable building. Oryx’s refurbishment includes improving both buildings to an EPC B rating and new M&E and state-of-the-art end-of-trip facilities, including additional cycling bays, shower facilities and new entrance façades. The Building 2 refurbishment will also include new roof terraces and EV charging points.
Premier Foods, the foods group behind brands such as Oxo and Mr Kipling, signed for a new upgraded headquarters yards from the building in 2023.
BMO Real Estate, the real estate business owned by Columbia Threadneedle signed Premier Foods to the Centrium 4 block, a three-storey office building comprising 19,242 square feet of offices with 86 car parking spaces.
Centrium comprises four office buildings half a mile from the city centre and next to the St Albans Abbey Station with other tenants including recruitment firm Michael Page.
Johan Eriksson, managing partner of Oryx, said in a statement: “Skechers agreeing to make such a significant long-term commitment at Centrium reflects the continued return to office-centric strategies amongst businesses. Having worked closely with them since our acquisition of the properties, it is hugely rewarding to continue and extend our partnership as they grow their UK presence."
Richard Parker, managing director of Skechers UK and Ireland, added: “Skechers is excited about continuing our business operations in St Albans and to the future ahead of us.”
Oryx began deploying capital in 2020 on behalf of international investors and has amassed a £200 million AUM UK real estate portfolio comprising assets such as Peugeot’s office headquarters in Coventry and 3 Bunhill Row in the City of London, which is let to the international law firm Trowers & Hamlins.
California-headquartered shoe group Skechers was founded in 1992 by Robert Greenberg.
Mark Stansfield, senior director of UK Market Analytics, CoStar Group, said: "The Skechers deal is St Albans’ largest-ever office letting, eclipsing Wanadoo’s 29,500-square-foot commitment in 2004 and AON’s 29,000-square-foot letting in 2012. It is St Albans' first new letting over 20,000 square feet to a private sector company since Apple took 22,000 square feet at Victoria Square in 2017, when Theresa May was still Prime Minister, and is Hertfordshire’s largest office deal in the past 12 months."
BrayFoxSmith advised Oryx, while Compton Rose advised Skechers.