Broadband operators cut and run

News

09 June 2001

Telco tenants pull out of Chiswick Park and Mayfair Place, W1, as USparents pull in their horns
Lucy Barnard and Adam Coffer

The downturn in telecoms has hit two of London’s most prominent schemes.

Stanhope’s 139,350m² (1.5m sq ft) Chiswick Park in west London and Burford’s Mayfair Place, W1, are set to lose two major tenants.

Broadband company XO Communications will assign its lease for the entire 9,290m² (100,000 sq ft) Building 2 at Chiswick Park, raising fears that the Thames Valley office market may be forced to fall back on older-technology occupiers.

XO, which agreed the prelet in January, has been told to dispose of the building by its US parent, in response to the slump in the global telecoms market. It also considered that Building 2 would be one of the easiest disposals from XO’s portfolio.

Henry Williams, development director at Stanhope, said: “We are disappointed to be losing such a significant occupier as a result of circumstances beyond our control, but we sympathise with XO’s position.”

Chiswick Park, however, has some consolation in news that Teletext is close to taking a 4,645m² (50,000 sq ft) prelet for two floors at Building 9.

Mayfair Place in London’s West End is also seeing a TMT retreat. Broadband company 360networks is to dispose of all of its 1,486m² (16,000 sq ft) at the Burford scheme. Advised by Healey & Baker, 360networks set a rental record of £915 per m² (£85 per sq ft) when it took the space last year when the TMT sector was booming. But its US directors have since decided to scrap plans for a central London HQ in favour of staying put in its cheaper Maidenhead offices.

James Brounger, director at Insignia Richard Ellis, said: “The composition of the Thames Valley has moved away from TMT occupiers towards old technology this year. Last year, 60% were TMTs and 40% others. This year it is down to 30% TMTs – but we expect it to return to its original levels next year.”

JLL and FPDSavills are agents for Chiswick Park.

Telco tenants pull out of Chiswick Park and Mayfair Place, W1, as USparents pull in their horns Lucy Barnard and Adam Coffer The downturn in telecoms has hit two of London’s most prominent schemes. Stanhope’s 139,350m2 (1.5m sq ft) Chiswick Park in west London and Burford’s Mayfair Place, W1, are set to lose two major tenants. Broadband company XO Communications will assign its lease for the entire 9,290m2 (100,000 sq ft) Building 2 at Chiswick Park, raising fears that the Thames Valley office market may be forced to fall back on older-technology occupiers. XO, which agreed the prelet in January, has been told to dispose of the building by its US parent, in response to the slump in the global telecoms market. It also considered that Building 2 would be one of the easiest disposals from XO’s portfolio. Henry Williams, development director at Stanhope, said: “We are disappointed to be losing such a significant occupier as a result of circumstances beyond our control, but we sympathise with XO’s position.” Chiswick Park, however, has some consolation in news that Teletext is close to taking a 4,645m2 (50,000 sq ft) prelet for two floors at Building 9. Mayfair Place in London’s West End is also seeing a TMT retreat. Broadband company 360networks is to dispose of all of its 1,486m2 (16,000 sq ft) at the Burford scheme. Advised by Healey & Baker, 360networks set a rental record of £915 per m2 (£85 per sq ft) when it took the space last year when the TMT sector was booming. But its US directors have since decided to scrap plans for a central London HQ in favour of staying put in its cheaper Maidenhead offices. James Brounger, director at Insignia Richard Ellis, said: “The composition of the Thames Valley has moved away from TMT occupiers towards old technology this year. Last year, 60% were TMTs and 40% others. This year it is down to 30% TMTs – but we expect it to return to its original levels next year.” JLL and FPDSavills are agents for Chiswick Park.