New outer London offices
in Maidenhead are to be funded by Rockspring, which has formed a joint venture to bring forward the completion of the development.
CoStar UK reported market sources as saying Rockspring had made the move to provide a boost to the 66,000 sq ft speculative scheme at Hines Meadow, which is a development led by RREEF and Bell Hammer's Tor.
Rockspring will inject around £20 million into the project, while RREEF - which is part of Deutsche Bank - will provide the building and the land.
The publication said many developers have been drawn to Maidenhead, Berkshire as a result of a lack of Grade A outer London offices
. As such, approximately ten speculative south-east office projects are due to complete this year.
It has been a busy first few months of the year for Rockspring, which recently sold Hays House in Guildford on behalf of Rockspring UK Value Fund. The multi-let premises of outer London offices
was purchased for around £4.5 million from clients of Cornerstone Real Estate Advisers.
Manager of the fund Richard Bains commented: "The early refurbishment and subsequent lettings were significantly ahead of our original business plan, underlining the importance of creating good-quality office accommodation, which appeals to tenants in an otherwise challenging occupational market."
The refurbishment in 2011 resulted in the entire first floor being let to MPX and Compass, boosting the rental tone from £16 per sq ft to £23 per sq ft.
Rockspring purchased a speculative office development for £5.2 million from Hammerson at the end of last year. Located in Staines, the scheme at The Causeway will be transformed into new headquarter buildings of Grade A outer London offices
, delivering almost 60,000 sq ft of space.
Construction was scheduled for spring of this year, with the organisation hoping to have the offices on the market for letting during the following spring.
Posted by Sarah Dudley
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