Agents pick the most significant Deals (for the six months to the end of June 2016)
Thames Valley Court, Bath Road, Slough
Type of deal Freehold sale
Vendor Threadneedle Properties
Purchaser Tauheedul Education Trust
Size 78,000 sq ft
Price c £12.5m
Chosen by Angus Malcolmson, director, Bilfinger GVA
Thames Valley Court had become overflow offices for Blackberry from their nearby HQ. However, with the imminent expiry of the lease, Threadneedle reviewed all alternative uses for the property. The floorplate did not allow for easy conversion to a residential use and there was no proven demand for hotels or hospitals in that location, so demand from the schools sector resulted in the sale to Tauheedul Free School. Slough has been a challenging office market for the last 15 years but with the loss of around 12 buildings to alternative uses – predominantly residential, but also schools and conference centres – available stock has diminished to the extent that a number of landlords, including Brockton/Landid, XLB/Lumina and SEGRO, have decided that the time is right to speculatively develop. With growing demand for bars, restaurants and retail, a renaissance for central Slough could also be expected.
Onslow House, Onslow Street, Guildford
Type of deal Leasing
Landlord Standard Life
Occupier Electronic Arts
Size 12,700 sq ft
Rent Undisclosed
Chosen by Matthew Swash, associate director, South East office tenant representation, JLL
The decision by computer games specialist Electronic Arts to further commit to Guildford signifies the town’s continued ability to attract and retain internationally renowned occupiers. Having originally moved to Onslow House on a 10-year lease in 2006, Electronic Arts decided to undertake a review of its presence at the property prior to its 2016 lease expiry date. Alternative options in the south west M25 area were explored and, after extensive consideration, the decision was taken to restructure their occupation and take a new 10-year lease at Onslow House. The decision to stay at Onslow House, as opposed to relocating to one of the more ‘traditional’ South East technology hot spots, such as Reading or Brighton, is testament to Guildford’s appeal to occupiers with a global footprint. It also acknowledges the high-quality local amenities, its connectivity and the access it provides to a skilled talent pool.
Building 3, Guildford Business Park, Guildford
Type of deal Leasing
Landlord Benson Elliot
Tenant Enstar
Size 18,000 sq ft
Price £32 per sq ft
Chosen by Rhodri Shaw, partner, national markets office agency, Strutt & Parker
With the letting of this space to insurance broker Enstar, Benson Elliot has achieved both full occupancy of the building and set a new record rent for Guildford. As a result of this success, the park’s owners have been reviewing undertaking a new 80,000 sq ft phase of speculative development at Building 2. However, in the light of the Brexit vote, they may have to cut their cloth accordingly and I could foresee them opting for a more conservative scheme.The Enstar deal, meanwhile, demonstrates that Guildford, like a number of towns throughout the South East, still enjoys a significant level of demand for high quality offices in out of town locations. Dedicated car parking provision remains a key requirement for occupiers seeking space within the region and, increasingly, this can only be met in such locations. The letting also shows that occupiers are happy to pay leading rents for well located, high quality, out of town space.
Gauging the trials and tribulations of the South East property market
In one of the largest post-Brexit transactions to date, Canterbury City Council bought 50% of the Whitefriars shopping centre
for £80m.
Avison Young took on a trio of senior agents from Capita Real Estate to oversee its South East team. Piers Leigh, Chris Barrs and Tom Bridgman have all become principals.
Developer Bond City awarded Kier the contract to develop its £53m St James project in Dover, comprising a Cineworld cinema, Travelodge hotel, restaurants and shops including Marks & Spencer.
Unite Students is planning a 480-bed development in Portsmouth at a cost of £30m, taking the number of student bedrooms in the city to 2,200.
Lamron Estates and SJR secured £40m from Royal London Asset Management for a seven-storey office development in Woking.
Shares in Foxtons dropped sharply following the release of a trading update warning that the EU referendum was likely to weigh on its profits.
Seven things you need to know – vital statistics, facts and figures for the South East
7.4%
total office rental growth expected across the Thames Valley in 2016, despite Brexit uncertainty
9.5m
projected population of the South East by 2021, a 9.3% increase on 2011, compared with 8.6% for England
4.2%
rental growth in the industrial sector in Q1 2016, the highest outside of London
740,000
flights per year that could be handled by Heathrow with a third runway. The decision has been postponed post-Brexit
31%
above its 10-year average for South Coast office take-up during 2015
100m
infrastructure investment in Ashford, Kent, over the next five years, including the new junction 10a of the M20
£37.50 per sq ft
highest office rent for Thames Valley, with Blackberry’s signing at Pearce Building, Maidenhead. Reading’s highest in 15 years was £34 per sq ft with Gateley’s The Blade signing
