Fluor to Relocate UK Headquarters

Fluor Corporation has signed a contract to relocate its current UK headquarters and operations center to SEGRO's IQ Farnborough development in Hampshire. Financial terms of the transaction were not disclosed.

The real estate contract with SEGRO is to build a new company headquarters with a state-of-the art, four-building complex comprising approximately 210,000 square feet. The new headquarters will consist of one building of approximately 76,000 square feet owned by Fluor and an additional 134,000 square feet of leases in three other adjoining buildings. All four buildings will be new construction. Fluor's current UK office is located in Camberley, Surrey, which is less than five miles from the new office site.

IQ Farnborough is a SEGRO-owned work/live development located approximately 35 minutes southwest of London and adjacent to the Farnborough airport. Many UK-based and international companies maintain offices and operations at the location.

"It is a tribute to the quality of the UK workforce and business environment that Fluor is today announcing these major investment plans," said Lord Mandelson, the UK Government's Secretary of State for Business. "A diverse and sustainable economy needs high-quality project management and engineering jobs and I am gladdened that a well-regarded global business such as Fluor is placing the UK at the heart of its operations to service Europe and the Middle East. The UK Government is pleased to support Fluor and welcomes today's news."

"The Farnborough area has a rich history and a wonderful mix of heritage-protected buildings as well as new high tech facilities," said Alan Boeckmann, Fluor Corporation's Chairman and CEO. "This relocation makes sense for our company and our employees on a number of levels. We will be within a short distance of direct train lines from London which will help us with recruiting. There are amenities close by to serve the needs of our employees and clients like the town centre, hotels, restaurants and day care facilities. Finally, we are expecting to be able to significantly reduce our energy consumption using new systems and technologies."

"The transaction, which is the largest commercial property contract in the South East in the last seven years, demonstrates Fluor's commitment to doing business in the UK," said Ian Thomas, Managing Director of Fluor LTD. "Fluor's UK operations have nearly 1,800 employees working for clients around the globe in diverse business sectors including: energy and chemicals; power; renewable energy; manufacturing and life sciences; nuclear; transportation and telecommunications to name a few."

Construction of the buildings is scheduled to commence in January 2009, with completion expected by mid-2010. An official groundbreaking date will be announced at a later time.

Fluor has been headquartered in Camberley since the mid-1980s and has maintained a permanent operation center in the UK for more than 50 years.