Boultbee Brooks Real Estate (BBRE), advised by Savills and Aurum Real Estate, has pre-let Stone Cross, its 40,000 sq ft office building in Brentwood, Essex to Sky CP Ltd, a subsidiary of Sky plc.
The property is set to undergo a comprehensive refurbishment this summer to create new Grade A specification offices, allowing Sky to relocate their R&D and office operations from their existing Kings Road, Brentwood office. Sky has agreed to a new 15-year lease for the entire property and will pay an annual rent of circa £1.1 million, equating to £28.25 per sq ft (£304 per sq m), with an additional rent allowance on the reception.
Alex Aitchison, Director at BBRE, comments: “We are very pleased to have let Stone Cross ahead of the existing tenant’s upcoming lease expiry, which is testament to the strength of the building’s location and excellent car parking provision. Our continued strategy to invest and develop best in class, amenity rich and well connected property, has successfully secured the letting ahead of business plan. With office supply remaining critically low in Brentwood, plus the new Elizabeth Line connection and the excellent town centre amenities on the door step, the building is unparalleled in Brentwood and we were able to set a new headline rent as a result.”
Robert Cannock, Director at BBRE’s retained portfolio investment advisor, Aurum Real Estate, adds: “having identified this property in 2016 as having strong underlying fundamentals that would appeal to potential future tenants, BBRE has subsequently worked hard to secure the letting to Sky and that in turn has justified our collective belief in the location and the property itself. The result is the creation of a high quality office investment that is both valuable and eminently tradable. The asset offers not only excellent income security but also good future rental growth potential from a sub £30.00 per sq ft base, which in turn offers excellent value to Sky compared to other Greater London or Thames Valley locations’.
Mike Storrs, associate director at Savills, adds: “Stone Cross provided Sky CP with an excellent opportunity to consolidate into one building within the town, which remains a popular business location outside of London. Whilst last year the market was largely characterised by sub 20,000 sq ft transactions, potentially due to the lack of availability, this latest deal is further indication that corporate activity is set to resume in the region in 2018.”
Sky CP Ltd was advised by Cushman & Wakefield.