The company will double the size of the space, possibly leading to the creation of more jobs.
With 275 current employees in the London office, the toy manufacturer said it wanted to send a clear signal that the city was central to growth plans. It is hoped that the expansion will enable the company to open up more jobs.
The plans comes after it was announced that Briton Bali Padda will take over later this year as the first non-Danish person to run the business.
The company did not comment on Brexit, however finance chief John Goodwin said that the city had access to a “broad pool of talented employees”.