20 August 2013
TESCO PENSION FUND AGREES £32 MILLION FUNDING DEAL AT BROOKGATE’S CB1 DEVELOPMENT, CAMBRIDGE
Tesco Pension Fund has agreed to fund Twenty Two Station Road, Brookgate’s 64,490 sq-ft office development that forms part of its CB1 master plan in Cambridge, for a total cost of more than £32 million.
Twenty Two Station Road is more than 90% pre-let to tenants Mott MacDonald, the Cambridge-based international management, engineering and development group, and regional law firm Birketts at average lease lengths of more than 20 years. One vacant suite of 5,400 sq ft remains available. The scheme will be developed jointly by Tesco Pension Fund and Brookgate, with construction starting in August 2013 and practical completion in March 2015.
Bidwells advised Brookgate in the deal and John Miles &Company represented Tesco Pension Fund.
Sven Topel, Chief Executive of Brookgate, said:
“Tesco Pension Fund joins a growing group of leading investors at CB1.This latest funding deal will enable Mott MacDonald to remain on Station Road and to cater for Birketts’ growth in the city. As a locally based developer, we recognise that CB1’s ability to accommodate these modern office requirements is an important factor in Cambridge’s regional, national and international competitiveness.”
Jenny Buck, Head of Property at Tesco Pension Investment commented:
“This investment is in line with our strategy to purchase well located, high quality property assets in growth centres like Cambridge. We were attracted to the growth potential of Twenty Two Station Road given the regeneration of the Cambridge station area, as well as the quality of the building and its tenancy profile. We are delighted to be partnering with Brookgate in this project”
Twenty Two Station Road is a five-storey building, designed by TP Bennett, located just 250 metres from Cambridge’s mainline station in the heart of the new CB1 quarter. It is the second in a new generation of office buildings at CB1, aimed at attracting and retaining major Cambridge employers. Twenty Two Station Road follows the recently-completed European headquarters of Microsoft Research at Twenty One Station Road, developed by Brookgate and funded by Orchard Street Investment Management LLP.
The CB1 masterplan creates a new gateway to Cambridge and will provide 600,000 sq ft of commercial space, 630,000 sq ft of residential, space and 1,000 student rooms, plus retail, restaurants and bars. The project also provides a refurbished station concourse and new public square, new transport interchange, high quality hotel and multi- storey cycle park.