Defence giant Babcock International Group Plc has drawn up a shortlist of Plymouth city centre buildings it is planning to move more than 2,000 workers into. The company announced on Monday that it is looking to relocate “support function” staff out of Devonport Dockyard.
PlymouthLive now understands that the FTSE 100 company, which last week revealed a £364m profit, will not be building a new base but will regenerate an existing building to become its “capability centre”.
Babcock has a “shortlist of options”, PlymouthLive has learned. It has not been revealed which buildings are on the list, but there are several large blocks on sale in the city centre, including the House of Fraser store, which has its long-lease on the market for at least £3m after failing to sell at £4m when a deal fell through.
The building which has Tesco Express and TK Maxx on its ground floor, but has space above, has its long lease on sale for at least £4.5m. There is office space listed for rent at Old Tree Court, Mast House, St Andrew’s Cross, Princess Street, Millbay, Bretonside and in Cobourg House.
PlymouthLive understands that there is no set timetable for moving the staff, but Babcock would like it to happen as soon as possible. The company has called its plans “transformative” and said they were part of a “trailblazing approach to support regional regeneration across the UK” and part of a “defence dividend”.
It said: “The company is planning to relocate employees from some of its Devonport support functions into a new capability centre in the centre of Plymouth to help boost collaboration, foster wider prosperity and support defence delivery.”
David Lockwood, chief executive at Babcock, said: “Our ambitious blueprint for Plymouth is a model for regional regeneration and one we are committed to delivering.
The company’s plans were not included in Plymouth City Council ’s city centre vision document, only released in March, which envisages 10,000 homes in the area.
But this week council leader Tudor Evans welcomed Babcock’s plan and called it a “really significant moment for Plymouth".
He said bringing 2,000 workers to the city centre will have “a huge ripple effect” with support for cafés, restaurants, shops, and cultural venues, helping to create “a vibrant city centre economy”.
Luke Pollard, Labour MP for Sutton and Devonport, and armed forces minister, called Babcock’s proposal “good news for the city centre and Devonport”. He said: “Plymouth City Council and I have been working with Babcock for many months on their plan to create more jobs and invest in skills in our city.
"The plans announced today (June 30) are an important first step towards the multi-million pound investment in the city centre. Thousands of new homes, an updated public realm like Armada Way and hundreds of new jobs created - this is how we'll make our city centre vibrant again."
Rebecca Smith, Tory MP for South West Devon, said: “I welcome Babcock's plan to deliver on the 'defence dividend' by forging stronger partnerships with our city.
"If the Government's investment can match our city's ambition, this partnership with industry will regenerate Plymouth city centre, create new pathways back into employment and bolster SMEs.
"Crucially, this will lead to a Plymouth city centre we all want to use and have a positive knock-on effect for South West Devon where many of Babcock's employees live and raise families."
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