Turnstone Estates has secured £16m of funding for a speculative office development in Chelmsford, Essex from Standard Life Investments, acting on behalf of RBS Pension Trustee.
The duo have formed a joint venture to build the 42,238 sq ft Priory Place office scheme, which will be located on the junction of Parkway and New London Road.
Work on the scheme, which includes 80 car parking spaces, began this week with completion scheduled for early summer 2007.
Chris Goldsmith, managing director of Turnstone Estates, said: “High quality office accommodation is in high demand in the Chelmsford area and there is next to no grade A supply.
“This market strength has given us confidence to build speculatively.”
Paul Forshaw, a director in the national development team of CB Richard Ellis, said: “This speculative funding is a very positive sign for the office development market, demonstration the improved confidence in the sector from institutional investors.”
The Priory Place site was acquired by Turnstone in 2000 as part of a portfolio that included Fenton House and Greenwood House, also on New London Road.
CBRE advised on funding; Taylor & Co are letting agents. Pardoe Properties advised Standard Life Investments.
References: EGi News 04/07/06
