Bidwells acts for Brookgate's £87M speculative office funding at CB1
Bidwells Investment Team acting for Brookgate has secured speculative development funding for the largest office scheme in Cambridge.
Aviva Investors and Brookgate also agree long-term CB1 funding partnership.
Aviva Investors acting for Aviva Life and Pensions UK Ltd and mixed-use development specialist, Brookgate have announced the £87 million forward funding of a new speculative office building, 50 & 60 Station Road at CB1, Cambridge. Totalling 163,000 sq ft, the office scheme forms a key part of the CB1 masterplan and is the largest speculative office building to be developed in Cambridge city centre.
Bidwells acted for Brookgate on the development funding and its Business Space and Retail and Leisure teams will be retained agents on the letting of 50 & 60 Station Road.
Saul Western, Partner, Investment, at Bidwells said:
“This deal once again highlights just why the Cambridge Phenomenon shows no sign of slowing down.
“The CB1 project represents a new city quarter for Cambridge which includes: new Station Square, an Accor Ibis Hotel, a new 3,000-space multi-storey cycle park and the 125,000 sq ft One Station Square office scheme, alongside restaurants, cafes and retail outlets. The CB1 area is already home to a growing cluster of global and UK companies.
“Bidwells has been working alongside Brookgate on the implementation of the masterplan and has worked on a number of areas from planning, development funding, retail and business space agency sales and ongoing management and lease consultancy service.”
Aviva Investors will acquire the site and fund construction of the new Grimshaw designed Grade A office scheme, which will offer cutting edge office accommodation. The development has planning consent, with start on site planned for October 2016 and completion due February 2019.
Ed Casal, CEO, Aviva Investors Real Estate commented: “Cambridge is one of those cities that embodies the type we are strategically committed to – one where talented people want to live, work, play and learn. As a widely recognised global hub for life sciences and bio tech industries, our conviction in the city’s prospects means we are willing to make this commitment, despite uncertainties generated by Brexit. Cambridge has a bright future and we want to be part of it.”
In addition, Brookgate and Aviva Investors have entered into a long-term working relationship, with Aviva Investors committed to future development opportunities at CB1. These opportunities will be developed in response to occupational market demand.
Christian Anderton – Associate Director, Aviva Investors Real Estate
“In line with Aviva Investors Real Estate strategy, the key differentiating factor in the success of this deal is our longer-term commitment, not only to Cambridge, but to creating a partnership with Brookgate, through which we have the opportunity to deliver a pipeline for the medium term. The acquisition secures a facility to deploy the in-place capital and new global mandates attracted to our value creating investment and asset management platform.”
Sven Topel, Chief Executive of Brookgate says:
“The speculative funding deal with Aviva Investors is a hugely significant step in the completion of CB1, a key driver for the continued economic importance of Cambridge. Our long-term partnership with Aviva Investors demonstrates our commitment to the city and highlights Cambridge as a strong regional economy. This deal forms part of £434 million of funding secured so far at CB1, helping to ensure that Cambridge continues to attract large multinational firms and retain its position as a major business and technology hub”
Cambridge continues to evolve as one the UK’s most important business and research cluster’s with a line-up of world-class businesses including Microsoft, Mott MacDonald, Deloitte, Thales and Carter Jonas who are based at the vibrant new city quarter surrounding an upgraded Cambridge station.
A brand new Station Square is nearing completion, with retail provision set to front the new square, along with new public space, providing a focal point for CB1’s business district.
Andrew Appleyard, Senior Director, Aviva Investors Real Estate commented: “This deal is testament to our belief in the strength of the Cambridge market and the commercial achievements of CB1. We are committed to the delivery and completion of CB1 and to the wider economic growth of Cambridge. This transaction comes at a significant time and shows that with the right opportunity there is confidence and an appetite for speculative development and investment.
This acquisition and development project is an ideal fit with the Aviva Linked Property Fund’s strategy to invest in core locations with sustainable growth prospects over the long term, underpinned by an exciting local economy at the forefront of innovation in pharmaceutical, biotech, life sciences and many other areas of technology.”
CB1 is providing a significant boost to Cambridge’s economy by attracting world-class and high-growth businesses, residents and visitors to the area. Designed by Rogers Stirk Harbour + Partners, the masterplan is delivering a state-of-the-art transport interchange, featuring the UK’s largest cycle park with 3,000 spaces, prime ‘Grade A’ offices, premium residential, retail and hotel space and purpose-built student residence accommodation.