Drinks manufacturer PepsiCo has entered advanced talks for a new 105,000 sq ft headquarters at Oxford Properties’ Green Park in Reading, Berkshire.
The firm will pay around £32 per sq ft for its new office at 450 South Oak Way. It is consolidating from 95,000 sq ft at the Arlington business park in the town.
PepsiCo began its office search in January 2013 ahead of a June 2015 lease break.
The deal marks the largest letting at Green Park since October 2012, when telecoms firm Huawei signed an agreement for 140,000 sq ft at 300 South Oak Way, and the second-biggest letting at the 190-acre park since it was bought by Oxford from PRUPIM for £400m in November 2011.
The start of the second half of the year in Reading has seen a burst of activity, with investors wanting to capitalise on expected rent rises from £31.50 per sq ft to £35 per sq ft by the end of 2014, according to Knight Frank.
Oaktree Capital Management and Patrizia UK this week announced they would speculatively develop an EPR Archiects-designed 60,000 sq ft office scheme at 85-acre Winnersh Park.
Benson Elliot and Stanhope are planning to speculatively develop a 210,000 sq ft block at Station Hill, while Brockton Capital and Landid will launch a public consultation on 11 July on plans for a £100m makeover of 130,000 sq ft Thames Tower in the town centre.
Savills is advising PepsiCo; Campbell Gordon, Cushman & Wakefield and DTZ are letting agents on Green Park.
All parties declined to comment.
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