Merger activity triggers South East space rethink

  A flurry of space is expected to come to market in the Western Corridor following a recent uplift in M&A activity in the computing and pharmaceuticals sectors.   Following Oracle’s $7.4bn (£4.9bn) takeover of rival computer software Sun Microsystems last week, CB Richard Ellis has begun a review of the two giants’ combined estate.   The review is expected to lead to the disposal of significant space at Sun’s 300,000 sq ft Guillemont Park HQ in Camberley, Surrey. Sources said that the business could be consolidated within Oracle’s 500,000 sq ft HQ at Thames Valley Park in Reading, Berkshire.   Sun, advised by Jones Lang LaSalle, has itself also been seeking to offload around 175,000 sq ft of space at Guillemont Park, including two 57,000 sq ft half-built schemes and its 60,000 sq ft Java House. JLL and CBRE declined to comment.   GlaxoSmithKline’s £2.5bn acquisition last week of US skin-care therapy group Steifel is also expected to bring further prime stock to market in the South East.   Sources questioned whether Steifel would now complete its move to Exton Estates’ and Royal London’s 48,880 sq ft Luminaire scheme in Maidenhead, Berkshire, which it prelet last year.   GSK, advised by JLL, is already scaling back its estate as part of a £1.5bn cost-cutting drive.   There is also growing speculation about whether drugs company Wyeth will occupy its 140,000 sq ft purpose-built HQ at PRUPIM’s 180-acre Green Park in Reading, following its takeover by Pfizer.   paul.norman@egi.co.uk