ABSTRACT AGREES MAJOR PRE-LET AND FORWARD FUNDING IN BRISTOL

Mark Glatman's Abstract Securities has announced that its wholly owned subsidiary - Abstract (Bristol) Limited – has completed an agreement for lease for the letting of the final phases of its 100 Bristol Business Park development, comprising in excess of 132,000 sq ft net, to Babcock Integrated Technology Limited, together with a sale of the resulting investment to Aviva Investor’s Lime Property Fund Limited for consideration in excess of £55m.

This represents one of the biggest lettings in the Bristol out of town office market for many years. The new campus consolidates Babcock’s long-term occupation in the Region and the combined phases will provide Babcock with a new Grade A office facility in excess of 218,000 sq ft net comprising two buildings each of c86,000 sq ft, a smaller office of c40,000 sq ft and c6,500 sq ft of A1/A3/A4 space which will be sublet by Babcock in due course to appropriate tenants to provide a complementary offering to the Business Park.

The site, speculatively acquired by Abstract in December 2016, was formerly the headquarters of Du Pont and comprises 7.3 acres. This announcement follows on from the letting of Phase 1 of the development comprising 86,000 sq ft, in July 2019 to Babcock, also funded by Lime Property Fund

Bristol Business Park is an established office park situated five miles north of Bristol City Centre with excellent transport links and within easy access of the M32, M4 and M5 Motorways. In addition, Bristol Parkway Railway Station lies within 10 minutes’ drive, providing a regular Inter City service to London Paddington, within 1hr 30 mins. Major occupiers on the Park include: ALD Automotive, Boeing, Motability Finance, QinetiQ, Thales and the University of the West of England.

Babcock has agreed a 15-year full-repairing lease, at a commencing rent of approximately £2.67 million per annum, subject to five yearly rent reviews linked to CPI + 1%, collared and capped at two per cent and four per cent per annum.

Lime Property Fund is a secure income long lease property fund managed by Aviva Investors. The fund targets property investments let to strong tenants on leases with inflation-linked or fixed-rental uplifts and lease terms of 15 years plus.

Mark Glatman, Chief Executive of Abstract Securities, said: “We are delighted to be delivering the next phases of buildings for Babcock in Bristol, and, yet again, we have been able to procure efficiencies of design and delivery which drives a highly competitive but excellent corporate workplace in keeping with a number of buildings we have delivered for Babcock across the UK over recent years. Our design and delivery teams have done another fantastic job in bringing this development forward in the current climate and the trusted relationships with Babcock and with Aviva have proved robust over recent weeks despite global uncertainty.’’

Jon Hall, Managing Director for Technology at Babcock, said: “We’re delighted that the campus plans are progressing with work on Phase 2 due to commence shortly. The Babcock Technology Centre, which opened in summer last year, is a modern working environment designed with our people and customers in mind. The future build will enable us to enhance current ways of working and promote a creative environment where innovation can thrive. It delivers a Bristol-based business and technology hub promoting collaboration with a range of stakeholders.”

Kris McPhail, Fund Manager, Aviva Investors, said: “We are pleased to extend our work with Abstract, a company with a long track record of delivering high-quality office accommodation for corporates. This transaction is expected to provide our institutional clients with long-term inflation-linked cashflows and consolidates the occupation of a strong tenant into two additional new buildings. These are exactly the type of investments we are actively targeting for the Lime Property Fund.”

Phase 1 of the Bristol Business Park development has been shortlisted at the British Council for Offices (BCO) Awards 2020 in the Corporate Workplace category following the judging panel visit in January. Winners will be announced in October.

Abstract was unrepresented in the letting and investment sale. DTRE acted on behalf of Aviva Investors. Lambert Smith Hampton advised Babcock.

Pinsent Masons advised Abstract in documenting the transaction. Addleshaw Goddard acted for Aviva and DWF acted for Babcock.

Bowmer & Kirkland have been appointed as main contractor by Abstract. Keppie Design are retained as architect. For more information contact: Mark Glatman (mark.glatman@abstractsecurities.com)

Ends-

ABSTRACT COMMITS TO SPECULATIVE OFFICES IN CAMBRIDGE

Mark Glatman's Abstract Securities has announced that its wholly owned subsidiary - Abstract (Cambridge) Limited – has exchanged contracts to acquire a 9.17 acres (3.71Ha) site at Fulbourn Road Cambridge, with Cambridge College, Peterhouse, from the Wright’s Clock Land Charity. Abstract propose to speculatively build around 300,000 sq ft of offices with car parking, subject to detailed discussion with the local planning authority. 

Following on from several successful speculative office schemes across the UK over the last 7 years, this project represents a major investment by Abstract in the Cambridge office market where supply constraints, coupled with demand, especially from life sciences, biotechnology and other more traditional office users, remains high. 

Abstract have been granted a long leasehold interest by Peterhouse who will retain the freehold ownership of the land.

The site, currently comprising open farmland zoned for business use, is adjacent to Peterhouse Technology Park, also owned by Peterhouse, which is the location of the global headquarters of ARM plc. The land lies south east of the city centre, around 2.5 miles from the railway station and gives easy access to the M11 and A14.

Abstract have retained Scott Brownrigg to design their proposals for the site which will provide a range of grade A office buildings capable of being occupied by a variety of users for multi or single occupation, but particularly focused on the technology, science and knowledge based sectors.  As with all Abstract schemes, a highly sustainable and environment focused approach will be adopted, while providing flexible space suitable for a range of end user needs, particularly important given the diverse range of target occupiers in the Cambridge market.

Mark Glatman, Chief Executive of Abstract Securities, said: “We are really excited to be developing in Cambridge. This is a location which we have followed closely for many years and, against a backdrop of so much uncertainty in the world today, we have no hesitation in committing to speculatively build here at the current time. Our blend of occupier focused skills, and tried and tested delivery platform, means that we can quickly deliver first class space into a unique market and befitting its highly skilled workforce. We believe Cambridge will be a key engine room to growth as our economy recovers over the coming years.

We are delighted to have worked on the purchase with Peterhouse, the oldest College in Cambridge, founded in 1284, and we will be maintaining a close relationship throughout the development process in order to realise our aligned ambitions for the land.’’

Bidwells represented Abstract and Peterhouse in the acquisition. Cheffins represented the vendor.  Abstract were advised by Pinsent Masons and Peterhouse by Mills and Reeve.

For information about the proposed development please contact:

Mark Glatman (mark.glatman@abstractsecurities.com) or

Christopher McPherson (christopher.mcpherson@abstractsecurities.com )

Ends-

For media information, please contact Pauline Gregory, Pauline@skylarkpublicrelations.com /07833 490964 or Lisa Mennie, lisa@skylarkpublicrelations.com/  07825 225 414 

ABSTRACT DOUBLE IN BASINGSTOKE

Mark Glatman’s Abstract Securities have announced that they have let ‘The Florence Building’ in Basingstoke, to Sovereign Housing Association, and subsequently sold the entire share capital of the Company which owns the asset, on behalf of its shareholders, to LGIM Real Assets (Legal & General). 

Legal and General has bought the building on behalf of its LPI (Limited Price Inflation) Income Property Fund for a purchase price of approximately £29m.

While the property was marketed at rental levels up to £28.50 psf, the whole building was taken by Sovereign on a new 20 year lease subject to minimum and maximum uplifts linked to RPI at review.   The structure of the lease resulted in an asset price yield close to 4% which enabled a substantial rent subsidy for the premises which, including all car parking, reduced the commencing rent payable.

‘The Florence Building’ represents Abstract’s most recent “uncompromising value”, office development, providing 61,415 sq. ft. plus 203 car spaces in a new multi-storey car park. The property is in Basing View, the central office core for the Town, and is the first large speculative office development to commence in the Town Centre for over 15 years. The development completed in July 2018.

Sovereign is one of the largest housing associations in the Country providing over 56,000 homes for around 130,000 people in housing need across the South and South West of England and the Isle of Wight and building around 1,600 new homes each year to rent or buy.

Sovereign was formed in November 2016, as the result of a merger between Spectrum Housing Group and Sovereign Housing Association.  ‘The Florence Building’ will become the new Central Services Hub for the organisation.

“Christopher McPherson, Development Director of Abstract Securities, said: “The letting to Sovereign underpins our confidence in Basingstoke as a business destination, with its excellent transport links, first class amenities and high-quality work force, and our decision to speculatively build here is wholly vindicated by this long term commitment to the Town by a major employer.  This is a huge endorsement for Basingstoke. We have generated good tenant interest since the building completed, but Sovereign were nimble and decisive. A number of other potential occupiers will be disappointed’.

Mark Glatman, Chief Executive, added, “Once again we have seen potential in a market which has been long overlooked, but where the fundamentals are good, and where there is a large catchment of skilled labour. We have delivered a new Grade A office building, attracted good occupier interest, and agreed a sensible leasing structure which provides value for all concerned at a substantial discount to office rents in the South East. We have shown again that we can offer occupiers a significant cost advantage when they relocate to one of our buildings and Legal & General, with whom we have worked before, were an obvious purchaser.’’

Derek Gilby, Senior Fund Manager of the LPI Income Property Fund, commented, ‘’This is an excellent buy for the fund, offering a secure long-term income stream off a low base which provides a hedge to inflation and strong underpin to the investment.  We continue to seek public sector deals with long let assets and investment grade covenants for the Fund and will remain active in this market.’’

The Florence Building was designed by TP Bennett. Bowmer & Kirkland was the contractor.  The solicitors representing the parties were Pinsent Masons acting for Abstract, Clarke Willmott acting for Sovereign and Clifford Chance representing Legal & General.  DTRE acted for Legal & General in the investment acquisition. Abstract were unrepresented. Savills and RARE were the retained letting agents.

Visit www.theflorencebuilding.com.

Attached image shows Abstract’s ‘Florence Building’ in Basing View, Basingstoke. -Ends-

For media information, please contact Pauline Gregory, Pauline@skylarkpublicrelations.com /07833 490964 or Lisa Mennie, lisa@skylarkpublicrelations.com/  07825 225 414 

Property professionals take 166,691,897 steps towards ending youth homelessness for LandAid in October

More than 500 property industry professionals have now taken enough steps to walk three times around the world during October. They were taking part in Steptober, the first industry-wide step challenge sponsored by Abstract Securities. The event has now raised over £100,000 for LandAid, the property industry’s charity. 

Steptober challenged property professionals to walk, jog or run to see which team of four could log the most steps throughout October – improving mental and physical wellbeing whilst raising money to end youth homelessness. The challenge came to a close just in time for the annual LandAid Day on 1 November, property’s biggest day of fundraising, which saw property companies taking part in wacky and wonderful activities across the UK. 

The event culminated with a prize giving on LandAid Day, kindly hosted by CMS. Four coveted prizes were given out. Leach Rhodes Walker Architects Team CJG walked away with the Team with the Highest Step Count Award, logging a staggering 3,056,138 steps between them and holding the top spot since the off. They were closely followed by Leach Rhodes Walker Ltd Team JB and Northern Scam in second and third place, respectively.

#4CEOs4Steptober, David Atkins of Hammerson, Chris Grigg of British Land, Robert Noel of Landsec and David Sleath of SEGRO, clearly won the Highest Team Fundraiser Award, sponsored by IPSX having raised over £45,000, enough to fund at least 3 beds spaces for young people who were homeless.

Archie Blair, Abstract Securities won the Individual with the Highest Step Count Award taking 1,106,032 steps – an average of 35,000 steps a day. The North won the Location Outside of London with the Highest Step Count Award, sponsored by Gerald Eve. 

The challenge was made possible due to sponsorship from Abstract Securities, support from media and data partner EG, who promoted Steptober each week throughout October, and Prize Giving sponsor CMS. 

This year’s LandAid Day saw the property industry doing even more to raise money to end youth homelessness. Paragon BC, one of LandAid’s newest Foundation Partners, undertook a company-wide challenge to cycle the distance between Lands End to John O’Groats – a massive 874 miles! Goldcrest Land planned an inventive race across London, where teams vied to be the first to get from their offices in Fulham to Hoxton, using a different mode of transport each. A whole host of other companies, such as British Land, Knight Frank and PwC all took part in an assortment of unique activities throughout the day, raising even more to help end youth homelessness in the UK. 

Paul Morrish, Chief Executive, LandAid: ‘At LandAid we always know that our audience can be competitive but we’ve really seen this taken to the next level during Steptober – from running marathons, to climbing mountains, from taking in steps in Paris to San Francisco, even to me making the most of walking meetings – we’ve seen the property industry step up once again to end youth homelessness. A huge thank you to everyone who took part, and in particular to the #4CEOs4Steptober, who have now not only taken time out of their busy schedules to get competitive but also raised over £45,000 for LandAid! I have certainly enjoyed my first Steptober. LandAid Day was a little different this year, but we still saw the usual weird and wacky fundraisers from our supporters. All of which prove the great steps the property industry can take towards ending youth homelessness when it unites. Thank you.’ 

Mark Glatman, Founder and Chief Executive, Abstract Securities: ‘It has been an absolute pleasure to be the headline sponsor for the first ever Steptober. I have been wanting to have an industry-wide step challenge for a long time, knowing that this was a great way to harness the competitive nature of LandAid’s supporters. It’s been a great way to motivate my staff to get active, with some like Archie, from Abstract, who took home the prize for the most steps taking this challenge to the extreme! Thanks so much to everyone who took part – every step you took has taken us one step closer to ending youth homelessness.”

ABSTRACT ANNOUNCES JULY COMPLETION FOR THE FLORENCE BUILDING, BASING VIEW

Mark Glatman's Abstract Securities has announced that its associate company, Abstract (Basingstoke) Limited, will complete The Florence Building, its ‘uncompromising value’ office scheme, on 23 July 2018. It will be the Town’s first new speculative offices in 15 years offering the lowest cost per work station in the South East of England. Furthermore, 203 under-cover car parking spaces, will provide the best car parking ratio of any new speculative Town Centre office building in the South East. 

A landmark development located in Basing View, Hampshire, The Florence Building comprises 60,535 sq.ft. of ‘Grade A’ space on ground and four upper floors. Notably, the building offers flexible, virtually column-free floorplates from approximately 9,200 sq.ft. to 12,400 sq.ft. It is designed to a BREEAM 'Excellent' 2014 and an EPC 'A' rating to provide some of the most efficient and environmentally friendly office accommodation available.

The interior will be finished to a full Cat A standard including air-conditioning, suspended metal ceilings, LED lighting and raised floors.  A contemporary reception area will feature a double-height glazed atrium space, while lockers and shower facilities on the ground floor are adjacent to 48 secure covered cycle spaces. There is potential for up to 24 electric vehicle fast-charging points.

It is the fourth in a series of Abstract’s “uncompromising value” speculative office developments and follows on the heels of successful developments in Gatwick, Croydon and Glasgow, where a similar methodology has been well received by the market.

Mark Glatman, Chief Executive of Abstract, said: "Our scheme represents a superb opportunity for occupiers to take highly cost efficient space in Basing View, in a London-quality building with the ability to incorporate the latest workplace initiatives.  For example, the 'cost per workstation' based on an occupancy of 1:8m2 per person in the Florence Building is just £3,400 per annum when compared with £3,700 in Farnborough,  £4,800 in Reading and £5,600 in Guildford. Total occupancy cost in The Florence Building is over 75% lower than the West End core and nearly 30% lower than in central Reading*.”

A prime business location, Basing View offers an unparalleled location to enhance profitability and work life balance. It benefits from Enterprise Zone status with a new £10m landscaped public realm and a dynamic mix of office, retail and leisure amenities for staff. 

Just eight minutes’ walk to the train station (42 minutes to London, Waterloo) and just five minutes’ walk to leisure amenities;  a new proposed Village Hotel with gym, swimming pool, café and meeting/events space will soon join John Lewis Home and Waitrose.

Basingstoke is a rapidly growing town and one of the most affluent in the UK, surrounded by exceptional countryside with access to a significant pool of talent and easy access to some of the most desirable residential addresses.

The scheme is designed by TP Bennett and Bowmer & Kirkland is the contractor.  Savills and RARE are jointly marketing The Florence Building.

(*Source: Savills and Rare 2018. Comparable buildings outlined above are based on occupational densities between 1:8m2 and 1:10m2)

Visit http://www.theflorencebuilding.com/video/   and   www.theflorencebuilding.com for further information on the development.  For Abstract Securities visit www.abstractsecurities.com.

Further information:  Pauline@skylarkpublicrelations.com / mobile 07833 490964