Milton Keynes Council is to sell some of the council offices and adjoining land for development to Patron Capital for £15m.
Patron Capital has teamed up with First Base to deliver a £190m mixed-use scheme comprising 185,000 sq ft of offices, flexible workspace and 250 build-to-rent flats.
The development aims to meet demand from corporates seeking a hub and spoke office model and will retain and repurpose the existing building at Saxon Court.
The council’s wholly-owned development vehicle will sell the long lease for Saxon Court on Avesbury Boulevard and Saxon Gate to MK Gateway, a special purpose vehicle owned by Patron Capital. It intends to sell the office for around £9.3m and adjoining land for a further £4.7m.
The disposal is conditional on planning consent for the 450,000 sq ft scheme. It will be designed to support Milton Keynes’ target to be a net zero carbon city by 2030.
The site currently holds a three-storey 1990s office block adjacent to the Centre:MK and intu Milton Keynes. The council outlined proposals for a development sale in 2017 in a move to cut costs.
Kevin Cooke, senior partner at Patron Capital, said: “The redevelopment of Saxon Court will be our second partnership with First Base, who share our ethos of creating dynamic mixed-use places that revitalise city and town centres and support local communities.”
Barry Jessup, director at First Base, said: “Covid-19 is accelerating the shift away from the traditional corporate headquarters to a more agile hub and spoke model, with talent more dispersed across regional cities.
“Innovation is part of Milton Keynes heritage, and we will embed technology throughout to ensure Saxon Court is sustainable and future-proof, in keeping with the wider vision for the city centre.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
