Princess Cruises Will Relocate Headquarters

Princess Cruises, the world’s third-largest cruise line, will consolidate operations in Valencia in early 2001, moving its corporate headquarters from Century City to about 160,000 square feet of space leased from Newhall Land & Farming Co.

The consolidation comes as Princess embarks on a $3-billion shipbuilding program that will nearly double its size. The line has three ships on order and on Tuesday announced plans for four more. It currently operates nine ships.

In November, Princess Cruises, a subsidiary of British shipping giant Peninsular & Oriental Steam Navigation Co., relocated about 750 employees from Century City to a new reservation call center in a six-story, 108,000-square-foot building in Valencia’s Town Center area. That building also is owned by Newhall Land.

At that time, Princess said it planned to keep its administrative operations in Century City, where it has maintained its corporate headquarters since the mid-1970s. Princess spokesman Rick James said the expansion plans prompted the change of heart.

An added reason for the move was its effect on efficiency. “It was important to us, as we double in size, to be in one location versus being in a number of buildings,” James said. “We operate much better as a company in one location; it’s as simple as that.”

James said the company, which has about 1,250 employees, anticipates hiring 250 workers.

The cruise line signed 15-year leases for three buildings, including the call center. Two structures, one five stories tall and one four stories, will be built by Newhall Land in the next few months. The deal for the 270,000-square-foot complex is valued by real estate sources at about $100 million.

Newhall Land’s shares closed at $24.50, down 13 cents on the New York Stock Exchange. P&O;’s American depositary receipts rose 75 cents to close at $33.25 in over-the-counter trading.