Snapchat will increase its current London presence having signed terms to take 20,000 sq ft of office space in Shaftesbury Avenue. The business group signed a 10-year lease on the space, paying a rent of almost £80/sq ft.
Snapchat's new office on Shaftesbury.
Snap Group, the UK branch of The Silicon Valley firm has signed an agreement at 77 Shaftesbury Avenue in London’s Soho, occupying two floors at the Dolford Property Holdings-owned scheme, making the UK its main headquarters outside the US.
Only last year Snapchat opened its first office in London at the nearby 7-11 Lexington Street, where it occupies just under 13,000 sq ft. Since then its staff numbers have grown from just 6 to 75 in the UK.
Snap Group will follow the trend of other top US tech companies, such as Google, Apple, Facebook and Twitter. The company will now book revenue made from advertising sales and pay corporation tax in the UK. Snapchat is currently preparing for a $25bn (£21bn) stock market float.
‘Good Local Partner’
A Snap Group spokesman mentioned: “[We have made] a change to the way we operate our business in London. Going forward, we will bill our advertising revenue from the UK [and a few other countries] through a UK entity. This allows us to pay taxes in the UK, which we believe is part of being a good local partner as we grow our business.
“We want to pay taxes in the countries where we sell advertising, and this is an important step in building the infrastructure to achieve that goal.”
Snap Group will join Bank of East Asia and financial adviser Quayle Munro in the building.
The deal follows a series of tech lettings in London in recent months. Online travel company Expedia has signed for an extra 154,000 sq ft of space in Clerkenwell, taking on Cancer Research UK’s and Sage’s leases at the Angel Building. Online retail giant ASOS has taken an additional 40,000 sq ft of space at its north London headquarters and revealed plans for a £40m renovation project.
Dolford Property Holdings acquired 77 Shaftesbury Avenue from Swedish Life Insurance firm Gamla for £37.9m in 2010. It has since carried out a £13m refurbishment, adding an extra floor and bringing its office space available for rent to almost 60,000 sq ft.