News

Troubled Ionica to release up to 100,000 sq ft of offices

News

Philip Smith

05 November 1998

East of England, West Midlands

Ionica will also have to pull out of a proposed 6,038 sq m (65,000 sq ft) pre-let at Peterhouse Technology Park to the north of central Cambridge.

The company’s administrators, Pricewaterhouse Coopers and Ernst & Young, have already announced that some 600 of its 1,000 strong workforce would be made redundant in Cambridge and Birmingham, but have not confirmed where and when accommodation would return to the market.

However, it is understood that the administrators are reviewing Ionica’s property holdings with a view to releasing over 9,290 sq m (100,000 sq ft) to the market in Cambridge alone. The company occupies up to 13,935 sq m (150,000 sq ft) in Cambridge (including an HQ building on Cambridge Science Park) and runs a 6,503 sq m (70,000 sq ft) call centre operation at Brindleyplace in Birmingham.

Ionica is already trying to sub-let 2,508 sq m (27,000 sq ft) of space on the third and fourth floors of the 6,363 sq m (68,500 sq ft) No 1 Brindleyplace on a short term basis. The release of more space in the building is likely to be snapped up in a central Birmingham office market starved of significant chunks of available modern space.

However, it is harder to see an upside for the Cambridge market where, according to figures from Lambert Smith Hampton, Ionica accounted for 42% of uptake in the first half of 1997. It acquired some (51,300 sq ft) of new accommodation in the previous year.

Although it now occupies mostly modern space in four separate offices both in and out-of-town on a leasehold basis, it is a large amount to come on the market at any one time. However, local agents suggest that if it becomes available at the rent it was acquired at – between £129 and £150 per sq m (£12 and £14 per sq ft) – it could be attractive to potential occupiers.

EGi News 05/11/98

Troubled telecommunications giant Ionica, which is in administration with debts of around £300m, is set to release over 9,290 sq m (100,000 sq ft) of prime space to the Birmingham and Cambridge office markets following the appointment of administrators earlier this week. Ionica will also have to pull out of a proposed 6,038 sq m (65,000 sq ft) pre-let at Peterhouse Technology Park to the north of central Cambridge. The company’s administrators, Pricewaterhouse Coopers and Ernst & Young, have already announced that some 600 of its 1,000 strong workforce would be made redundant in Cambridge and Birmingham, but have not confirmed where and when accommodation would return to the market. However, it is understood that the administrators are reviewing Ionica’s property holdings with a view to releasing over 9,290 sq m (100,000 sq ft) to the market in Cambridge alone. The company occupies up to 13,935 sq m (150,000 sq ft) in Cambridge (including an HQ building on Cambridge Science Park) and runs a 6,503 sq m (70,000 sq ft) call centre operation at Brindleyplace in Birmingham. Ionica is already trying to sub-let 2,508 sq m (27,000 sq ft) of space on the third and fourth floors of the 6,363 sq m (68,500 sq ft) No 1 Brindleyplace on a short term basis. The release of more space in the building is likely to be snapped up in a central Birmingham office market starved of significant chunks of available modern space. However, it is harder to see an upside for the Cambridge market where, according to figures from Lambert Smith Hampton, Ionica accounted for 42% of uptake in the first half of 1997. It acquired some (51,300 sq ft) of new accommodation in the previous year. Although it now occupies mostly modern space in four separate offices both in and out-of-town on a leasehold basis, it is a large amount to come on the market at any one time. However, local agents suggest that if it becomes available at the rent it was acquired at – between £129 and £150 per sq m (£12 and £14 per sq ft) – it could be attractive to potential occupiers. EGi News 05/11/98