OAKLAND – PG&E has received approval to sell its San Francisco headquarters, a deal that gives PG&E the opportunity to relocate its headquarters to Oakland and channel hundreds of millions of taxpayer savings.
Government regulators have approved PG&E’s offer to sell several office towers in San Francisco to a group led by real estate giant Hines for $ 800 million.
“PG&E is continuing its phased move to its new headquarters at 300 Lakeside Drive in Auckland starting in the first half of 2022,” it said Tuesday.
The state’s public utility commission has approved the proposed deal, PG&E said.
“In addition to providing long-term savings for PG&E, the sale of our San Francisco headquarters will help offset future customer rates at a time when we make significant investments in safety and operations,” said Patti Poppe, CEO of PG&E. in the prepared issue.
PUC also approved PG&E’s plan to return $ 400 million in net savings to customers over a five-year period.
PG&E believes the $ 400 million will help alleviate the pain for customers that looms as a result of the utility coming up with multiple revenue proposals.
“This compensation will help curb future growth as the company continues to make significant investments in security and operations,” PG&E said Tuesday.
The PG&E San Francisco office complex consists of 77 Beale Street, 25 Beale Street, 215 Market Street, 245 Market Street, and 45 Beale Street, as detailed in SEC filings.
Commercial real estate firm CBRE advised PG&E in its efforts to sell its San Francisco headquarters.
The move to the office tower at 300 Lakeside Drive in downtown Auckland is expected to reduce PG&E’s real estate costs and help the company operate more efficiently.
“Tenant improvement work is currently underway at Site 300 Lakeside to accommodate PG&E headquarters and operational needs,” said PG&E spokesman James Noonan.
The interior upgrade could allow PG&E to move towards the attractive tower located next to Lake Merritt within the next few months.
“The space will be provided to PG&E in phases starting in early 2022,” Noonan said.
As part of further consolidating the power of the utility giant, PG&E also intends to relocate employees from PG&E’s existing offices in Contra Costa County to headquarters in downtown Auckland.
The company will vacate office buildings at 1850 Gateway Boulevard in Concord, 3401 Crow Canyon Road in San Ramon and an unspecified lot that the company leases at Bishop Ranch Business Park in San Ramon.
PG&E said it hopes to support Auckland’s economy and society by moving to the largest city in East Bay.
“We are actively listening to the needs of the Auckland community and are delighted to play our part in the city’s vitality,” said Poppe. “It is important for us to deepen our ties with our new hometown.”