UPDATE 1-Amazon to spend $1.16 bln to buy Seattle HQ

(Adds timing of purchase, Vulcan details)

By Alistair Barr and Bill Rigby

Oct 5 (Reuters) - Amazon.com Inc said on Fridaythat it will spend more than $1 billion to buy its corporateheadquarters in Seattle from Microsoft Corp co-founder PaulAllen's investment firm.

The world's largest Internet retailer plans to buy 11buildings, comprising 1.8 million square feet of corporateoffice space, for $1.16 billion. Amazon said it expects to closethe deal in the fourth quarter.

Amazon had been leasing the space. But at the end of August,Allen's Vulcan Real Estate, part of his Vulcan Inc investmentvehicle, put the buildings in Seattle's South Lake Union area upfor sale.

Allen, who co-founded Microsoft with school friend BillGates, has been the central figure in revitalizing the SouthLake Union neighborhood, which was a semi-industrial wastelanduntil recently, but is now a thriving center for tech firms andfeatures a number of fashionable restaurants.

Amazon already has plans to build new offices nearby tohouse its growing staff.

(Reporting By Alistair Barr)

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