ABSTRACT ANNOUNCES START ON SITE FOR ST VINCENT PLAZA, GLASGOW

Abstract (Glasgow) Ltd – a wholly-owned subsidiary of Mark Glatman’s Abstract Securities Ltd – has announced that it has completed its purchase of 303 St Vincent Street and on-site construction works are due to commence in a matter of days for its speculative high-quality office scheme, St Vincent Plaza in Glasgow City Centre, located at the gateway to Glasgow’s International Financial Services District (IFSD).

The building, which will create approximately 250 new construction jobs, will have an end investment value of £65m and be able to accommodate around 2,000 staff when it completes in early 2015.

St Vincent Plaza will comprise 170,000 sq ft of office space, built to a 'Grade A' specification, with rents from just £23 per sq ft – significantly undercutting current headline rents in the City. This landmark development, located opposite the HQ for Scottish Power, will be one of the key elements in the next phase of Glasgow’s IFSD, and will be the most cost-effective new-build office development in the City.

The building will deliver an extremely high specification and will comprise a lower ground, ground and ten upper floors together with 78 car parking spaces. St Vincent Plaza will offer flexible, virtually column-free floorplates of 17,000 sq ft; a feature penthouse office level with terrace, and some of the best views in the City. It has been designed to a BREEAM ‘Excellent’ standard and an EPC 'B' rating and will provide the most efficient and environmentally-friendly office accommodation in Glasgow, delivered into a market where available ‘Grade A’ supply has all but disappeared.

Mark Glatman, chief executive of the Abstract Group of Companies said “We are delighted to confirm our move to start construction. We have been working hard over recent months to finalise various complex agreements to enable this work to commence and we are very pleased to be able to now move forward without any further delay.”

Christopher McPherson, development director of Abstract added, “St Vincent Plaza will be the most competitive speculative ‘Grade A’ office development of its kind to be completed in Glasgow for several years and is likely to be one of only a few speculative office schemes of its size outside London. Starting construction underlines our commitment and confidence in the IFSD and the City as a whole and we are confident that the scheme will let at an early stage.

“By coming to the market with a top-quality product at a time when there is a dearth of ‘Grade A’ office space and quoting rentals from just £23 per sq. ft, we are significantly undercutting the established Glasgow market without compromising on quality and offering exceptional value for money, as well as significantly reduced operational costs compared to existing City Centre stock.

“St Vincent Plaza aims to attract big name corporate, thus creating more local employment and growth for Glasgow. The building not only offers great value for money at a time when occupiers have to keep a very close eye on the bottom line, but low running costs and very efficient design mean that costs per workstation will be significantly less while still maintaining an extremely comfortable working environment.”

Just minutes' walk from both Charing Cross and Anderston train stations, St Vincent Plaza will also offer immediate access to the M8 and to Glasgow Airport, just 15 minutes away, as well as several bus routes and is within easy walking distance from Glasgow's main retail and leisure zones.

The scheme has been designed by Glasgow-based Keppie Design. Bowmer & Kirkland have been appointed as the contractor. CB Richard Ellis and Ryden have been jointly appointed to market St Vincent Plaza.

Please visit www.stvincentplaza.com

AKER AND ABSTRACT JOIN FORCES FOR A 1 MILLION SQ FT BUSINESS PARK

Aker ASA, the Norwegian investment company, is tying up with Mark Glatman’s Abstract Group of Companies, to develop a 1m sq ft business park on one of the most prominent sites in Aberdeen.

The 40-acre site, adjacent to Aberdeen International Airport, will be known as Aberdeen International Business Park. The site was acquired from Miller Developments Limited which are contracted to provide the site services for this site alongside their adjoining D2 development.

The end value for the park will be around £400m.

The first phase of Aberdeen International Business Park will include at least 300,000 sq ft of office development supported by a full medical suite, a crèche, restaurants and cafes, a gym and additional sports facilities and complementary convenience retail facilities.

It is understood that there is no commitment for oil giant Aker to occupy the space but talks are ongoing.

Sources said rents would be "sensibly priced" to create a park that occupiers most wanted to move to in Aberdeen with 8,000 staff eventually expected to be employed there.

The site is one of the most prominent in Aberdeen and will benefit from the development of the Aberdeen Western Periphery Route (AWPR).

Mark Glatman said: “In a highly competitive job market such as Aberdeen, it is imperative that companies can base themselves in a business location that enhances their ability to recruit and retain employees. The environment, facilities, quality and location of this Business Park is being tailored to the needs of potential occupiers and will be second to none in the UK.’

Abstract indentified and introduced the site to Aker and handled all aspects of the acquisition. Abstract will manage all aspects of the development which by completion will be approximately 1m sq ft. Abstract will instigate a full facilities management operation on site to optimise services for all occupiers.

It is also the intention of the parties to seek a four-star hotel for the site, either on a lease or management contract basis on a prominent part of the site closest to the Airport.

Knight Frank introduced the site to Abstract and have been retained to market the development. A second agency appointment is being considered. Glasgow-based Keppie Design have been appointed as the masterplan architects and detailed discussions with the local planning authority are on-going.

The site already has planning consent and it is anticipated that construction will start quickly, with delivery of the first buildings in 2014. Abstract anticipate the first 100,000 sq ft will be fully fitted out and capable of operation by August 2014.

Published by Co-Star News on 28 February 2013 – www.costar.co.uk 

ABSTRACT LETTING COUP FOR RENAISSANCE CROYDON

Abstract Securities is set to lease close to half of its Renaissance scheme in Croydon to the Pension Protection Fund in a significant vindication of its decision to speculatively develop the 100,000 sq ft headquarters, CoStar News can reveal.

PPF, the statutory fund set up in 2004 under the Pensions Act to deal with public concern over employee pensions, has gone under offer to take 39,396 sq ft across the first and second floors in what is understood to be the largest letting in Croydon for more than a decade.

It will move from Knollys House at 17 Addiscombe Road in Croydon and is thought to be paying close to the £22 per sq ft quoting rent on the basis of a 15-year unbroken lease.

PPF is understood to have also shortlisted Wainbridge's 112,329 sq ft Sunley House and CarVal Investors and Canmoor's redevelopment of Interchange Croydon, a 183,300 sq ft headquarters at 81- 85 Wellesley Road, both of which are understood to have primarily missed out because they were unable to house the company across just two floors.

Abstract (Croydon Ltd), a wholly owned subsidiary of Mark Glatman’s Abstract Securities, gained consent in April 2012 and has been speculatively developing the scheme – rebranded “Renaissance” – at 9-12 and 13-16 Dingwall Road next to East Croydon Station for completion this summer.

Bowmer & Kirland is contractor while Knight Frank and Vanessa Clark’s Sinclair Clark have been marketing the scheme.

Abstract is financing the build cost of the scheme entirely from its own balance sheet and funding from a private third-party partner. Abstract went under offer to buy the NAMA controlled site out of receivership at the end of November 2011 for £3.2m.

The second part of the site - 13-16 Dingwall Road – had consent for a 17-storey, 250,000 sq ft office building. The other site – 9-12 Dingwall Road – is allocated for a circa 30,000 sq ft office development.

Abstract however replaced the proposals with a scaled back net 100,000 sq ft BREEAM 2011 Excellent scheme offering 20,000 sq ft floorplates and marketing at rents of £22 per sq ft.

Glatman, one of property’s canniest investors, said the acquisition fitted with his principal focus at present on the development of ‘austerity offices’.

Glatman argues that via a combination of tight design and procurement processes – especially in the purchase of land at the lowest point in the development cycle – Abstract will be able to significantly undercut the local alternatives for quality office space.

The strategy is being mirrored in Glasgow where Abstract acquired a 170,000 sq ft speculative office development opportunity at 301-303 St Vincent Street Glasgow out of receivership. The 1.5 acre site was owned by Castlemore Securities before the company went into administration in February 2009. Abstract is targeting rents there of £23 per sq ft to undercut the area’s top rent of £28 per sq ft.

Established in April 2000 by former Akeler chief Mark Glatman, the Abstract group of companies brings together combined experience of over 6m sq ft of business space development across the UK and Europe.

CBRE advises the PPF while Knight Frank and Sinclair Clark advise Abstract. -Ends-
Published by Co-Star News on 21 February 2013 – www.costar.co.uk 

EVERGREEN FUND MAKES £6 MILLION INVESTMENT IN 400,000 SQ FT SOAPWORKS OFFICE DEVELOPMENT IN SALFORD

The North West Evergreen Fund, which invests in real estate projects in Greater Manchester, Cumbria, Cheshire and Lancashire, has made an early investment, providing a loan of £6 million to the Soapworks regeneration development project in Salford, which is owned by global alternative asset manager, The Carlyle Group and its joint venture partners Nikal and Abstract Securities.

The Evergreen investment will support the delivery of the second 210,000 sq ft phase of the proposed 400,000 sq ft Grade A office redevelopment of the former Colgate-Palmolive factory in Salford Quays’ new Media City boundary. The Carlyle Group’s Soapworks is a major regeneration project with a gross development value of circa £70 million that is set to transform the historic site into a commercial hub, creating new employment opportunities and revitalising the Exchange Quay area. The

Evergreen-funded part of the project alone is set to deliver 1,350 jobs and will act as a catalyst for further phases of the Soapworks development which will create up to 2,500 jobs.

The secured financing will allow construction of the second phase of the Soapworks development, blocks A, B and C, to commence early in 2013, with completion expected by the end of that year, providing c.210,000 sq ft of Grade A, shell and core office space. This follows the completion in October 2011 of the first phase of the project, the 20,000 sq ft Boilerhouse, which is already fully let to engineering firm Vital Services. The final phase of the Soapworks project, Block D, will add a further 170,000 sq ft of office space when it is completed at a later date.

The North West Evergreen Fund, which is made up of 16 local authority limited partners was established to provide funding to support real estate projects which are critical to the region's economy, generating jobs and growth. It is capitalised through the European Regional Development Fund (ERDF) and other public money allocated under the Joint European Support for Sustainable Investment in City Areas (or “JESSICA”) initiative, which is managed by the European Investment Bank in the North West on behalf of the Homes and Communities Agency. The application to the EIB was led by the Association of Greater Manchester Authorities. The Soapworks project exceeded the regeneration targets covering employment, remediation and floor space outputs and, as such, was granted the maximum amount that the Evergreen Fund could provide.

The Evergreen model provides loan funding to be invested in projects which will generate a financial return and will then be recycled back into the fund to help support further projects. The fund is advised by CBRE Indirect Investment Services Limited, the FSA regulated arm of CBRE Real Estate Finance, and co-chaired by Manchester City Council and Lancashire County Council.

www.soapworks.com

ABSTRACT ANNOUNCES START ON SITE FOR ‘RENAISSANCE’, CROYDON

Abstract (Croydon) Limited – a wholly owned subsidiary of Mark Glatman's Abstract Securities – has announced that on site construction works commenced on 11 June 2012, for a speculative high- quality office scheme, ‘Renaissance’ at 9-16 Dingwall Road, Croydon, close to East Croydon station. The building will have an end investment value of £35 million and it will be able to accommodate around 1100 staff when it completes on 12 August 2013.

L-R - Councillor Eddy Arram, Mayor of Croydon, Jon Rouse, Chief Executive of Croydon Council , Mark Glatman

The company will build 100,000 sq. ft. of 'Grade A' office space, on the 1.13 acre site with rents from just £22 per sq. ft. – significantly undercutting rental levels for other prospective new builds in Croydon and the South East and representing the most cost effective new build offices within the M25.

The building will offer an extremely high specification and will comprise five floors offering well designed, very flexible floorplates of 20,000 sq. ft., which will be easily capable of subdivision. Targeting a BREEAM 2011 'Excellent' environmental accreditation, it will be one of the first speculative office buildings in the UK to achieve this standard. It will also achieve an EPC ‘B’ rating.

Mark Glatman, Chief Executive of the Abstract Group said: “We are delighted to confirm our move to start construction in such a short time scale, since our purchase on 6 January and achieving planning consent on 30 March.

“Renaissance is Croydon’s first speculative commercial office development in 20 years and starting construction so quickly underlines Abstract‘s commitment and confidence in the regeneration of Croydon. We are confident that Renaissance will let at an early stage given the value for money package on offer of low rent, superb quality and the location of the building. This has to be the only speculative new build in South London offering such a cheap rent without compromising on build quality and representing great value to end users.

“Croydon has been overlooked by Central London occupiers for many years, but now offers a very compelling story. In addition to substantial infrastructure investment over the last few months, it is also the focus for other significant investment, not least in its retail offering. It has fantastic transport links – East Croydon Station is the second busiest station in the UK with a 16 minute travel time to Victoria, 12 minutes to London Bridge and 14 minutes to Gatwick Airport. The tram offers a connection as far west as Wimbledon.

“Companies with a heavy administrative presence in Central London must be focusing on their cost base and the ‘Renaissance’, Croydon story in compelling. For instance the comparison to Victoria in total occupational cost will be around one third at Renaissance.”

The building has been designed by Gary McCarthy at Andrew Lett Architects. Agents Sinclair Clark and Knight Frank have been appointed to market the new office scheme.

Further information on ‘Renaissance’, Croydon, is available from:-

http://www.renaissancecroydon.com

Further information from pauline@skylarkpublicrelations.com or 07833 490964