Agents pick the most significant Deals (for the six months to the end of February 2016)
Green Park, Reading
Type of deal Leasing
Landlord Oxford Properties
Occupiers Bayer and Thales
Size 80,000 sq ft and 111,000 sq ft respectively
Rent Confidential
Chosen by Angus Currie, head of South East office tenant representation, JLL
The Bayer and Thales deals, which exchanged within a week of each other, are two of the largest and most important signings in the Thames Valley in recent years. As well as their significant size, they also represent the disposal of the last buildings to have been leased by Cisco, which had remained unoccupied for many years, and their lettings mean the occupancy rate at Green Park is over 92%. Bayer is moving from its headquarters in Newbury, Berkshire, where it has been based for almost 35 years, to be closer to the core pharmaceutical clusters of Reading and the Thames Valley, while Thales is consolidating numerous business lines into a single facility, replacing its UK headquarters in Addlestone, Surrey. The moves dramatically reduce the level of Reading’s oversupply – giving increased confidence to developers to begin construction of speculative schemes. All of this further cements its place as the capital of the Thames Valley.
Strata, 1 Bridge Street, Staines
Type of deal Leasing
Landlord LaSalle Investment Management
Tenant Service Now
Size 58,500 sq ft
Rent £34 per sq ft
Chosen by Ed Davidson, senior surveyor, National Markets Office Agency, Strutt & Parker
I believe this first letting at Strata signifies the continued resurgence of occupier demand in the Thames Valley for good quality offices in strategic locations. Not only does it push headline rents back to levels seen in 2000, it also provides an ideal platform for rents in Staines to beat previous records. Rumours suggest a second letting in the building is imminent at £35 per sq ft, which would set a new headline rent for the town. In addition to the rental growth story, it is fantastic to see another example of significant occupier expansion with Service Now taking 200% more floor space than it previously occupied. This demonstrates the commitment that existing occupiers have to Staines and the confidence they have in it as a place to expand their businesses. LaSalle has been rewarded for undertaking such a speculative building and no doubt other developers will be hoping to emulate its success.
Glovers House, Bexhill Enterprise Park, East Sussex
Type of deal Pre-letting
Landlord Sea Change Sussex
Tenant Park Holidays UK
Size 25,235 sq ft
Rent/lease terms Undisclosed
Chosen by Chris Broome, associate, Cluttons
The recent letting of Glovers House to Hastings-based Park Holidays UK represented the largest office letting in this part of East Sussex for many years. Glovers House is the first part of the Bexhill Enterprise Park development, which aims to attract new companies to the area and retain growing, local employers. It was made possible through the construction of the £120m Bexhill-Hastings link road, which has unlocked land for commercial and residential development and is expected to bring £1bn of economic benefits to the area. In addressing its relocation, Park Holidays UK considered alternative locations close to the M25. Glovers House, however, was able to offer a much-needed solution to stay in the area and the link road, along with ongoing A21 improvements, were key to persuading the company to remain local. The Glovers House deal has also spurred the park’s owner to draw up plans for a second building, with planning submissions expected imminently.
JLL works on Woking hotel
JLL Hotels & Hospitality was appointed by Bandstand Square Developments to find an operator for the 190-bed, four-star hotel at its mixed use Victoria Square scheme in Woking.
Industrial strength takeover
Montagu Evans clinched a deal to buy South East industrial specialist Smith Young Real Estate
Taking the tablets
Cushman & Wakefield figures showed the pharmaceutical sector accounted for 1.4m sq ft, or 24%, of 5.8m sq ft office take-up in the South East during 2015.
Ready in Reading
February saw the Reading headquarters of energy firm BG Group being put up for sale with a price tag of £90m.
Out of reach
The ability to buy a home during the past year improved everywhere in England and Wales – except in the South East, according to research from Hamptons International.
Airport take-up down
Take-up of warehouse space around Heathrow in 2015 totalled 1.14m sq ft – a 17% decrease on 2014. A tightening of good-quality supply was the root cause according to Savills.
EG gauges the trials and tribulations of the South East property market
