Oaktree / Patrizia on a roll in Basingstoke with 162,000 sq ft of office lettings
22 June 2015
Oaktree Capital Management and Patrizia UK have completed a sequence of interlinked transactions at Chineham Park in Basingstoke to five occupiers, including three Fortune 500 companies and totalling 162,000 sq ft.
Existing occupier, Level 3 Communications is relocating to the Redwood 3 building in the heart of the park where it has taken 43,000 sq ft over two floors. The global communications provider will occupy the space on a 15 year lease at a rent equating to £18.00 psf.
Within the same building, Motorola Mobility has signed a new lease on 22,500 sq ft. The mobile device manufacturer has taken a seven year lease at a rent of £17.50 per sq ft.
Level 3 Communications move from the Chineham Gate and Ashwood building has enabled another existing tenant, Exertis, to double the amount of space it occupies at Chineham Park.
The technology distribution and specialist service provider will move into Ashwood and has agreed a rent of £18.00 per sq ft for the 43,000 sq ft self-contained office building which it will occupy on a 15 year lease.
Level 3 Communications has also agreed a reversionary lease on its 40,000 sq ft data centre at Oakwood, extending its commitment to December 2029.
At Central 40 building, medical technology and services company, Covidien, which was recently taken over by Medtronic in a $50bn acquisition, has leased 7,000 sq ft. It will occupy the space on a seven year term at a rent of £22.68 per sq ft.
The last of the recent deals has been agreed with Abacus Insurance, which has signed to lease on the 100 Cedarwood building in its entirety. The insurer has taken the 6,500 sq ft office building on a 10 year lease at a rent of £16.75 per sq ft.
Oaktree and Patrizia said the spate of deals reflected their vision for Hampshire's key out of town business location. Work will begin in September on the comprehensive refurbishment of Chineham Gate and Elmwood One which will deliver further Grade A space of 45,000 sq ft and 18,000 sq ft respectively.
Oaktree and Patrizia acquired the 95 acre business park in October 2014 as part of MEPC portfolio which also included Birchwood Park in Warrington and Hillingdon Park in Glasgow. Additionally, the joint venture owns Winnersh Triangle in Reading and a majority share of Watchmoor Park, Camberley.
Rupert Batho, Managing Director of Chineham Park at Patrizia said "Securing and retaining such a variety of high profile tenants at Chineham Park is testament to the wide ranging appeal of the park. Our ongoing improvements to the park mean that we can continue to accommodate the changing business needs of both of the existing and new occupiers".
Rob Brook, head of Portfolio Management at Patrizia UK said "This is exemplary of the kind of proactive, creative approach we have been taking across all of our parks".
Strutt & Parker and Hollis Hockley are the letting agents at the park and acted on behalf of Oaktree and Patrizia. CBRE represented Level 3 and Motorola, Colliers acted on behalf of Covidien whilst Exertis and Abacus Insurance were unrepresented.