Blackstone Negotiating ┬ú480m Deal for West London Business Park
Rising office rents have prompted occupiers in West London to go in search of office space in lower priced business parks, a move which has seen the Chiswick Park business park attract a string of big prelets and the interest of US private equity firm Blackstone.
Reported in todayΓÇÖs edition of Property Week, the West London Business Park is currently at the centre of a ┬ú480m deal that could see the 1.9m sq. ft. development sold by Chiswick Park Unit Trust if financing can be secured by Blackstone with Deutsche Bank.
Identified as a ΓÇ£goodΓÇ¥ investment, the office space and units available on the site have ΓÇô unlike other business parks located throughout the South East ΓÇô continued to attract a series of high profile tenants with large requirements.
Recent tenants to Chiswick Park include Orbis Technology and the well-known TV shopping channel QVC. Having secured Orbis in January of 2010 (35,000 sq. ft.), QVC then followed in February with and even larger requirements of 143,000 sq. f.t. Most recently the park welcomed Tullow Oil, who in August 2010 agreed a lease on a 134,000 sq. ft. unit.
Demonstrating the value added by the acquisition of such tenants, the valuation of ┬ú450m currently being asked for is significantly higher than the business parks previous valuation of ┬ú350m ΓÇô a value which was established less than twelve months ago.
While occupiers may be turning away from the West End in search of cheaper office space, the market for serviced office space throughout West London has actually seen an increase during the last 12 months, rising from an average of ┬ú363.00 per workstation in 2009 to ┬ú393.00 per workstation by the close of 2010.
In addition to the rising prices recorded in this sector of the office market, the requirements of businesses choosing to locate within serviced offices has also risen, with the 2009 average of 4.5 workstations per clients increasing to 5.4 workstations per client in 2010.
With exclusive negotiations between Blackstone and Chiswick ParkΓÇÖs owners continuing to hinge on their ability to secure funding from Deutsche Bank, any success would not only conclude with a closed deal but also with a boost to the UKΓÇÖs debt market ΓÇô a move which would assess the appetite of European Investors.
All data referring to changes in the serviced office industry is sourced from officebroker.com ΓÇô the UKΓÇÖs largest independent broker to the serviced office industry.