Office Investment Continues
Independent property investment fund Rockspring have taken on a 60,000 sq. ft. speculative office development in Staines, marking the latest in a series of office acquisitions by Rockspring across London and the South East.
Having invested ┬ú5.2m on behalf of a client, The Causeway Development in Staines will be a joint venture that aims to bring 60,000 sq. ft. of office space to market in early 2013. The office space, which will be split between two buildings, will be delivered to a Grade A standard while also seeking to secure a BREEAM rating of Excellent.
According to www.property-magazine.eu, Rockspring have now acquired nearly 250,000 sq. ft. of office space / speculative office developments in recent months. Included within this growing portfolio is the 70,000 sq. ft. 63 St MaryΓÇÖs Axe and 80,000 sq. ft. speculative development centurion House ΓÇô both located in the City of London.
With leading commercial agents warning of a shortage of prime office space across Central London in the near future, the acquisitions by Rockspring seem well placed to benefit from the increased competition expected to result from this shortage.
The Serviced Office Perspective:
Looking at the serviced office market in and around the site of The Causeway Development in Staines, officebroker.com has seen a ┬ú32 p/m decrease in the average price charged per workstation, having fallen from ┬ú340 p/m in 2010 to ┬ú308 in 2011.
In contrast average rental prices in the City of London have increased by ┬ú62p/m, rising from an average of ┬ú468 p/m in 2010 to ┬ú530 in 2011.
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