A tenant has finally been found for a 183,000 sq ft Thames Valley business park that has lain empty since 2002.
Development Securities and Invista Real Estate Investment Management, formerly Insight Investments’ property arm, are in discussions with electronic giant Siemens to take all four buildings at Frimley Square, Frimley, Surrey.
The letting will be the largest in the M3 corridor for five years.
However, Invista and DevSec are said to be offering a huge incentive package.
Sources said the pair had offered Siemens a rent of £18 per sq ft on a 15-year lease, with as much as four years rent-free.
Lettings in the area range between £18 and £22 per sq ft.
“If terms are at this level, it will be incredibly advantageous for Siemens,” said one source, “but the developers can now at least crystallise their losses.
“On their books, the site ceases to be a liability and becomes an asset.”
Invista chief executive Duncan Owen confirmed that Siemens had made an offer, but suggested terms were likely to be higher than £18 per sq ft.
“We’d be delighted if Siemens came on board,” he said, “but we are still looking at the details.”
Siemens chief executive Alan Wood last week sent a memorandum to staff telling them the firm was seriously considering a move to the Thames Valley complex.
He said staying at Siemens House in Oldbury, Bracknell, would incur a significant refurbishment cost, while “the new location will fit us for the 21st century”.
Lambert Smith Hampton advises Siemens; Atisreal and DTZ are joint letting agents on Frimley Square.
References: EGi News 08/09/06
