Agents pick the most significant deals (six months to end of August)
Grafton Centre, Cambridge
Type of deal Shopping centre investment
Vendor M&G Real Estate
Purchaser Legal & General Property
Size circa 500,000 sq ft
Price £99m
Chosen by Saul Western, partner, Bidwells
The sale of the Grafton Centre was one of the largest deals of its kind for Cambridge and it was hotly contested with strong institutional interest. Legal & General Property bought it for around £99m, reflecting a net initial yield of around 5.18%, well in excess of the £92.5m guide price. I believe the strength of interest in this shopping centre once again demonstrates Cambridge’s exceptional draw for investors. Cambridge is a hot spot for investors due to its status in the science, technology and innovation sectors, its strong university, its hospitals and because it is among the best-performing housing markets in the country. Legal & General Property has acquired the scheme with a view to playing an active role in improving and investing in it over the coming years. It is planning to work closely with key stakeholders to refurbish the shopping centre and adapt the tenant mix so that it meets the future needs of Cambridge shoppers.
Eastgate House, Thorpe Road, Norwich
Type of deal Freehold sale
Vendor Norwich-based private investor
Purchaser London-based developer
Size 25,544 sq ft
Price £1.5m
Chosen by Craig Knights, partner, Arnolds Keys (Norwich)
Further evidence of new investors, particularly from London, coming into the Norwich commercial property market was demonstrated by the sale of Eastgate House. The prominent, and largely empty, 1970s office block has changed hands in a £1.5m deal which, under permitted development rights (PDR), will see it turned into 37 apartments. It follows the £2.2m sale by Firstpace Construction earlier this year of Woodland Place to Saffron Housing Association, which will convert it into affordable housing. PDR is attracting new investors and other offices that have been bought for residential development have included Aldwych House, St Cuthbert’s House, Britannia House and Lovewell Blake’s former offices. All four were also bought by London-based investors. By removing such office blocks, investors will be encouraged to respond to demand by building new, high-quality office space. So, the sale of Eastgate House and others is good for the wider city economy.
CPC2, Capital Park, Cambridge
Type of deal Prelet
Developer XLB Property
Tenant Dow Chemical Company
Size 16,660 sq ft
Price Undisclosed
Chosen by William Clarke, associate director, business space, Savills (Cambridge)
My choice of top deal is the preletting of the second floor of the CPC2 building to Dow Chemical Company. Comprising a total of just over 40,000 sq ft, this is the final property to be completed at Capital Park in Cambridge. Construction is due to finish at the end of November 2015. It is the latest example of speculative construction in the city and, in addition, the letting there provides further evidence of multinational companies locating to Cambridge. In the past year, the city has seen a range of new entrants as it continues to attract interest from both national and international occupiers. These have included the likes of AstraZeneca, Apple, Kier and Huawei. Previous to this period, churn in Cambridge’s office market was largely drawn from home-grown companies and I believe this diversification, alongside home-grown expansion, is testament to the city’s growing reputation as a global business and
research and development hub.
Brookgate office plans
Brookgate won consent for
50 & 60 Station Road, the next phase of its CB1 scheme, which will comprise 183,000 sq ft in eight storeys plus retail and A3 space.
Biopharmaceutical search
Biopharmaceutical firm Gilead Sciences has signed a prelet for 93,000 sq ft of new space in Cambridge at Granta Park. The deal marks expansion for the firm which occupies 45,000 sq ft there. Knight Frank advised
Global to pass the port
Port operators were considering making offers for Great Yarmouth port after its owner, Global Infrastructure Partners, put it on the market for £75m.
Ipswich mall investments
At the main shopping malls in Ipswich, jv partnership Capital & Regional and Drum Property were planning a £26m investment in the Buttermarket and LaSalle was embarking on a £4m refurbishment of its rebranded Sailmakers centre.
B8 space at Felixstowe
Hutchinson Ports and First Industrial were expecting planning consent this autumn for 1.4m sq ft of B8 space at Felixstowe Logistics Park with work due to start soon after.
Town centre turmoil
Ipswich agents continued to raise concerns about the town centre’s lack of quality retail and leisure offering, with its historic loss of department stores, preferred retail investment out of town and, more recently, the departure of high-street occupiers Gap and Clintons.
EG gauges the trials and tribulations of the East of England property market
