Two former Development Securities executives are bidding to buy a 109,000 sq ft empty office block in Stockley Park, Heathrow, for £28m.
Clive Bush and Daniel van Gelder are in talks with the owner, Arlington Property Investors, which has provided a rental guarantee for two years on 5 Longwalk Road, vacated by telecoms giant BT in December 2004. One other bidder remains interested. BT had the space on a sublet from BP.
The Heathrow business park has 1.8m sq ft of built space, of which 650,000 sq ft is vacant.
If the deal, being done in joint venture with Schroders, is completed, Bush and Van Gelder’s Exemplar Properties will refurbish the block during the rental guarantee period.
A source said: “They reckon that when there’s a recovery, the best building in Stockley Park will go first.”
Charles Dady, a partner of Cushman & Wakefield Healey & Baker, said: “After the tenant vacated, API had a big void. It could have speculatively refurbished the building and then had to offer a rent-free period at a rent of around £25 per sq ft.
“But such is the investment appetite that it felt that it was better to let someone else do it, while giving them two years for the oversupply to ease off.”
References: EGi News 20/06/05
