As it works toward a spinoff and IPO of its mortgage insurance division, Genworth Financial also is pondering a redevelopment of its 45-acre Henrico headquarters.
The company confirmed Monday that it is temporarily moving its local workforce from its longtime multi-building campus at 6620 W. Broad St. to a single office across the road at Reynolds Crossing.
It has subleased 88,000 square feet at 6603 W. Broad St., a building previously occupied by Altria.
Genworth said the new space will help it provide a temporary stopover for its employees as it embarks on its “next chapter.”
“To provide a more modern workplace for our colleagues and best leverage the valuable real estate asset we have in the Richmond campus, we are planning to redevelop the campus,” the company said in an emailed statement.
“We soon will start a process to identify and engage the development partner, or partners, that can best work with us to achieve the highest and best use for the campus and to support a thriving Richmond community,” it added.
The company said a new Genworth headquarters building would be part of the broader redeveloped site, which it described as mixed-used to include office space for additional tenants, retail and restaurant space, and townhomes and apartments.
Genworth said it has about 850 employees who normally work at the Henrico campus. It expects a mix of around 300 of those to work out of the Reynolds Crossing space on any given day, once it begins to bring its workforce back into the office on a more regular basis. It has said it has yet to bring back its full workforce in-person since the pandemic began, opting instead to allow employees to continue working from home. A mix of in-person and at-home work will continue, it said.
“While our Richmond colleagues will continue to work in a hybrid manner for the foreseeable future, our temporary space provides a cost-effective space solution where Genworth colleagues can collaborate more effectively, keep their commute virtually unchanged, and witness the campus redevelopment progress as it occurs,” it said in the statement.
Genworth’s plans for redevelopment could unlock its 45 acres and allow it to cash in on the region’s thriving real estate market.
The campus currently consists of four buildings totaling nearly 500,000 square feet of office space, much of which is past its prime and empty both from the pandemic and previous downsizing.
The property also houses some vacant land, one large parking deck and one smaller parking deck.
The campus is owned through Genworth’s Newco Properties Inc. The assemblage was most recently assessed by the county at a combined $54 million.
Henrico County already has had its eye on Genworth’s land as an attractive spot on its future development map. The property was the subject of a charrette in 2019 to begin to study the best uses of the campus, among other parcels around the county.
Genworth’s temporary stop across the street is another feather in the cap for Reynolds Crossing and the former Altria building. The same building lured Warren Buffett’s Berkshire Hathaway Energy with a 79,000-square-foot lease last year. That deal coincided with Berkshire’s acquisition of Dominion Energy’s natural gas operations.
Genworth, meanwhile, continues to move toward the spinoff and public listing of its mortgage insurance division. The new subsidiary, called Enact Holdings, would be majority owned by Genworth.
The expected IPO will help raise capital to pay down Genworth’s debt, which it was left saddled with after its failed deal to be acquired by China Oceanwide Holdings.