Spelthorne Borough Council has bought the BP business centre for around £350m.
The oil giant’s campus, BP International Centre for Business and Technology on Chertsey Road, Sunbury-on-Thames, has 19 years remaining on its lease.
JLL had been appointed to market the property in line with a review of BP’s real estate strategy seeking in excess of £290m, a 5% yield.
From July: BP considers Sunbury sale and leaseback
(credit: Google maps)
The BP campus is the largest privately owned office park in the UK and is currently home to approximately 3,000 employees.
The site comprises 11 office buildings which provide 620,000 sq ft of accommodation.
Under the terms of the agreement, BP will remain as tenants at the Sunbury site, on a minimum 20-year lease.
The purchase was recently approved by the council and BP and encompasses the entire campus, excluding the South West corner.
The deal is the latest in a string of purchases made by local authorities to close the gap left by government cuts.
Councils have also been thinking more entrepreneurially about their assets, consolidating land to sell off or redevelop surplus property in their portfolios. Camden Council has submitted plans for a start-up incubator in Camden Town Hall to fund the building’s refurbishment.
Spelthorne Borough Council borrowed money from the Public Works Loans Board to fund the deal.
Cllr Ian Harvey, leader of Spelthorne Borough Council, said: “Securing the council’s financial stability is our highest priority and after exploring several options and taking advice from a number of independent experts, we are confident that this forward-thinking agreement represents a very sound investment for Spelthorne.
“It will be key in helping us to close the budget gap and protect the vital services which our residents and businesses need and deserve.
“We have had an excellent relationship with BP for many years and we are very pleased to be working with them on this exciting initiative.”
Cushman & Wakefield acted for Spelthorne Borough Council.
