Shares crash leads Reckitt to cancel Hayes HQ move

  One of the largest letting deals in the South East has collapsed, after the corporate occupier’s share price tumbled.   The US board of household cleaning goods manufacturer Reckitt Benckiser halted its plans to take 275,000 sq ft at London Gate in Hayes, Middlesex, after shares in the company fell by 22% in three months – from £3.01 to £2.33.   The decision follows eight months of exclusive negotiations with JER Partners, Resolution and Blackstone – the developers of the 650,000 sq ft scheme.   Reckitt Benckiser told the trio last week that it had put the move on hold indefinitely.   Blackstone managing director Stuart Grant said: “We were in discussions with Reckitt regarding a prelet. Its board has decided not to proceed with the deal, owing to concerns over the current economic climate.”   A senior Western Corridor office agent added: “The decision is very disappointing. While the region remains relatively resilient, this will affect confidence and sentiment as there are only a handful of lumpier deals expected this year.”   Reckitt appointed Vail Williams to find it a new HQ in July last year. Savills and Jones Lang LaSalle were advising Resolution, JER and Blackstone.   paul.norman@egi.co.uk