Benson Elliot Capital Management and partner Stanhope are planning to speculatively develop one of Berkshire’s largest office schemes.
The pair this week submitted redesigned plans for the 1.7m sq ft Station Hill development in Reading.
New proposals, designed by Allies & Morrison, are for 920,000 sq ft of offices across four buildings ranging from six to 20 storeys, 300 flats, 60,000 sq ft of shops and a new public square.
The existing Garrard Street car park will also be reduced to 800 spaces from 950, with a new leisure development on top of the building.
Benson Elliot and Stanhope believe this latest scheme will become a landmark development in Reading, setting new record office rents of £35 per sq ft.
The current highest rent in the town was achieved at One Reading Central in 2011 when software firm Pegasystems agreed to pay £30 per sq ft.
Phil Irons, partner at Benson Elliot, said: “In the same way that the Spinningfields scheme has been a game-changer for Manchester, I think Station Hill has the potential to do the same for Reading.”
Stanhope development director Jason Margrave added: “There have not been any projects of this scale in Reading before. It is going to redefine the area.”
Subject to planning, work could begin on site in mid 2014, with a phased delivery by 2024.
The pair bought a majority stake in the £500m project from John Madejski’s Sackville Developments in early 2011 and then tore up the proposals.
The previous Scott Brownrigg-designed plans, first put forward in 2007, included 800,000 sq ft of offices and 900 flats, although this was later reduced to 650.
joanna.bourke@estatesgazette.com
