Kainos no longer needs large headquarters due to Covid-19’s new hybrid working model

Belfast-based software giant Kainos has sold off half of its Dublin Road site after it decided to reduce plans for a new headquarters building.

The IT provider, which works across the digital services and workday practice sectors, still plans to develop new offices at Bankmore Square on the site of the former Movie House cinema.

Originally a 200,000 sq ft office development, the plans have been downsized to 80,000sq ft with the firm’s intention to sell off the remainder to Queen’s University Belfast for student accommodation.

The firm entered the pre-planning process for the original £40m development in February 2020, just weeks before the Covid-19 pandemic. Kainos has since confirmed that, given the move by businesses to a hybrid working model, it no longer needs a building of that scale.

In a statement the firm, confirmed: “In line with its previously announced strategy, the company plans to develop a new headquarters building to accommodate existing staff in a single, environmentally sustainable, purpose-built office. The new 80,000 sq ft building will be able to support the company’s future growth plans and has the capacity to accommodate up to 3,000 people.

“The revised design for the building will only require 50% of the existing site and, following a sale process, it is the company’s intention to dispose of the remainder of the land to Queen’s University Belfast, who will use it to develop high quality student accommodation.

“A further announcement will be made on the completion of the sale process.

“The announcement of this update will allow Kainos to proceed with the selection of a contractor for the construction of the new office building. It remains the company’s intention to fund the construction using cash on the balance sheet and, subject to final design, costs and board approval, will represent a capital investment of between £27m and £30m in the new office complex.”

Brendan Mooney, CEO of Kainos, added: "The announcement is another step towards the development of our new office in Belfast. Our new Bankmore Square development will provide us with a larger, more sustainable office that will bring all our colleagues together in a single location and, at the same time, provide significant capacity for our future growth.”