Kier Property is to transform a long derelict Reading site, once owned by a Tory minister, into a £200m mixed-use scheme.
The property arm of Kier Group has gone under offer at around £30m to buy the 20.5-acre Reading Gateway site from a private group of international investors.
Thames Valley sources said it had already decided to tear up existing planning consents for the land.
The firm is using its in-house architects and has hired Ian C King Associates to draw up fresh plans for 300 homes and more than 400,000 sq ft of sheds, which would sit under its light industrial Trade City brand. Kier is looking to expand Trade City via a joint venture with Investec.
Reading borough council has long identified the former Hewlett-Packard home as one of the largest property development opportunities in the Berkshire town.
But attempts to regenerate the land since Hewlett-Packard exited 393,000 sq ft of offices in 2007, have stalled following the financial crash.
Ex-landlord Wharf Land, set up by former Conservative minister David Mellor in partnership with Douglas Maggs, had planned an office-led revamp while the current owner has consent for 427,000 sq ft of distribution space.
One source close to the latest deal said: “Reading is crying out for more business and living space. There are just a handful of new large developments coming in soon, so Kier’s plans will be very welcome.”
Earlier this month, it was announced that two projects in Reading would be developed speculatively to capitalise on occupier demand: a 60,000 sq ft office scheme at Winnersh Triangle by Oaktree and Patrizia UK, and a 210,000 sq ft office tower at Station Hill by Stanhope and Benson Elliot.
Kier’s proposals are expected to be submitted by the end of the year, with completion scheduled for 2017.
Haslams is advising Kier; Lambert Smith Hampton and Mason Partners are acting for the vendor.
Joanna.Bourke@estatesgazette.com
