by Jane Roberts
Tesco is moving its headquarters out of Cheshunt and buying a building in Welwyn Garden City in Hertfordshire’s largest office deal for three years.
The supermarket operator is thought to be paying £18.5m to ICI for the Cirrus Building at Shire Park (above). The 10,219m2 (110,000 sq ft) block was developed by ICI in 1990 for its own occupation. It had been empty for two years when it became surplus to needs after ICI restructured.
Completion is due in September. The deal will also involve Tesco buying adjoining land to build 6,038m2 (65,000 sq ft) of space. Knight Frank and King Sturge are ICI’s agents. Healey & Baker is advising Tesco.
Tesco recently took 3,716m2 (40,000 sq ft) of short-term overflow space in Harlow through Saxon Law. It had considered staying at Cheshunt and commissioning a new building on the site. Arlington’s business park in Hatfield was also considered, but the company decided that Shire Park was the cheapest and easiest option.
Dairy Glen House at Cheshunt will be demolished and the site used as a car park. Tesco will keep some staff on site in Tesco House.
The last comparable letting in the area was at Diamond Point in Hemel Hempstead – three years ago. This latest deal is also one of the largest office sales outside central London for some time and is indicative of the current trend by tenants to consider buying freeholds or partial freeholds.
