ABSTRACT COMPLETES SALE OF RENAISSANCE TO M&G REAL ESTATE

Mark Glatman's Abstract Securities has announced that its wholly owned subsidiary, Abstract (Croydon) Limited, has completed the sale of its speculative Renaissance office development in Dingwall Road, Croydon to M&G Real Estate, three months ahead of completion.

This news comes soon after the announcement that The Board of the Pension Protection Fund has contracted to pre-let approximately 40% of the building.

Renaissance provides 100,000 sq. ft. of 'Grade A' office space comprising five floors offering flexible floorplates of 20,000 sq. ft. Work commenced in June 2012 with practical completion scheduled for November 2013. The building is one of the first speculative builds in the UK to target a BREEAM (2011) 'Excellent' standard.

With rents from £22 per sq ft, the office development provides one of the most competitive ‘Grade A’ office buildings in the South East. Abstract’s Development Director, Christopher McPherson, said: “We have strong levels of interest in the remaining space and we do not envisage it will be long before announcements are made regarding more occupier commitments. It is not a surprise that we have seen institutional interest in this product. Croydon is turning the corner as a credible business location - the transport infrastructure is second to none and significant planned investment in the Town will be transformational. The rental growth prospects for a brand new building of this quality so close to central London are very persuasive.’’

Abstract will continue to retain marketing responsibility for the remaining space in the development for the immediate future.

The building is the first of several speculative office developments that Abstract Securities intends to undertake across the UK.

Abstract are currently on site in Glasgow where it is speculatively building 170,000 sq ft of 'Grade A' office space, priced at just £23 per sq. ft. (a significant discount to local headline rents). The Glasgow scheme, St Vincent Plaza, is one of the largest speculative developments in the UK.

Mark Glatman, Chief Executive of Abstract Securities, said: “We are delighted that M&G Real Estate have acquired our development and supported our confidence in this product and location. We continue to maintain that while quality and environmental performance remain key drivers for corporate occupiers, value for money is fundamental. By exercising tight design and procurement processes – especially in the purchase of land at the lowest point in the development cycle – we have been able to bring both our Croydon and Glasgow developments to the market at exceptional rental costs”.

Knight Frank represented Abstract in the sale. Colliers International represented M & G Real Estate. Knight Frank and Sinclair Clark are retained in a letting capacity.

For media information, please contact Lisa Mennie at Skylark PR: T: 07825 225 414 / lisa@skylarkpublicrelations.com

About M&G Real Estate:
M&G Real Estate is the real estate fund management arm of M&G and is one of the top 25 real estate fund managers in the world by assets under management, with over £16 billion invested in a broad spread of properties across Europe, North America and the Asia Pacific region (as of 31 March 2013). M&G is the investment arm of Prudential Plc in the UK and Europe.
For more information, visit: www.mandgrealestate.com 

ABSTRACT CONCLUDES FIRST LETTING AT RENAISSANCE CROYDON

Abstract (Croydon) Ltd has confirmed that it has concluded an agreement for lease with the Board of the Pension Protection Fund on its Renaissance building currently under construction in Croydon. This letting accounts for about 40% of the 100,000 sq ft development and comprises the entirety of the first and second floors of the 5-storey building.

Knight Frank and Sinclair Clark have represented Abstract and the Board of the Pension Protection Fund was represented by CBRE.

Further information:

mark.glatman@abstractsecurities.com - 0113 288 5930
lisa@skylarkpublicrelations.com - 07825 225414

www.renaissancecroydon.com
www.abstractsecurities.com 

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