ABSTRACT LETTING COUP FOR RENAISSANCE CROYDON

Abstract Securities is set to lease close to half of its Renaissance scheme in Croydon to the Pension Protection Fund in a significant vindication of its decision to speculatively develop the 100,000 sq ft headquarters, CoStar News can reveal.

PPF, the statutory fund set up in 2004 under the Pensions Act to deal with public concern over employee pensions, has gone under offer to take 39,396 sq ft across the first and second floors in what is understood to be the largest letting in Croydon for more than a decade.

It will move from Knollys House at 17 Addiscombe Road in Croydon and is thought to be paying close to the £22 per sq ft quoting rent on the basis of a 15-year unbroken lease.

PPF is understood to have also shortlisted Wainbridge's 112,329 sq ft Sunley House and CarVal Investors and Canmoor's redevelopment of Interchange Croydon, a 183,300 sq ft headquarters at 81- 85 Wellesley Road, both of which are understood to have primarily missed out because they were unable to house the company across just two floors.

Abstract (Croydon Ltd), a wholly owned subsidiary of Mark Glatman’s Abstract Securities, gained consent in April 2012 and has been speculatively developing the scheme – rebranded “Renaissance” – at 9-12 and 13-16 Dingwall Road next to East Croydon Station for completion this summer.

Bowmer & Kirland is contractor while Knight Frank and Vanessa Clark’s Sinclair Clark have been marketing the scheme.

Abstract is financing the build cost of the scheme entirely from its own balance sheet and funding from a private third-party partner. Abstract went under offer to buy the NAMA controlled site out of receivership at the end of November 2011 for £3.2m.

The second part of the site - 13-16 Dingwall Road – had consent for a 17-storey, 250,000 sq ft office building. The other site – 9-12 Dingwall Road – is allocated for a circa 30,000 sq ft office development.

Abstract however replaced the proposals with a scaled back net 100,000 sq ft BREEAM 2011 Excellent scheme offering 20,000 sq ft floorplates and marketing at rents of £22 per sq ft.

Glatman, one of property’s canniest investors, said the acquisition fitted with his principal focus at present on the development of ‘austerity offices’.

Glatman argues that via a combination of tight design and procurement processes – especially in the purchase of land at the lowest point in the development cycle – Abstract will be able to significantly undercut the local alternatives for quality office space.

The strategy is being mirrored in Glasgow where Abstract acquired a 170,000 sq ft speculative office development opportunity at 301-303 St Vincent Street Glasgow out of receivership. The 1.5 acre site was owned by Castlemore Securities before the company went into administration in February 2009. Abstract is targeting rents there of £23 per sq ft to undercut the area’s top rent of £28 per sq ft.

Established in April 2000 by former Akeler chief Mark Glatman, the Abstract group of companies brings together combined experience of over 6m sq ft of business space development across the UK and Europe.

CBRE advises the PPF while Knight Frank and Sinclair Clark advise Abstract. -Ends-
Published by Co-Star News on 21 February 2013 – www.costar.co.uk 

EVERGREEN FUND MAKES £6 MILLION INVESTMENT IN 400,000 SQ FT SOAPWORKS OFFICE DEVELOPMENT IN SALFORD

The North West Evergreen Fund, which invests in real estate projects in Greater Manchester, Cumbria, Cheshire and Lancashire, has made an early investment, providing a loan of £6 million to the Soapworks regeneration development project in Salford, which is owned by global alternative asset manager, The Carlyle Group and its joint venture partners Nikal and Abstract Securities.

The Evergreen investment will support the delivery of the second 210,000 sq ft phase of the proposed 400,000 sq ft Grade A office redevelopment of the former Colgate-Palmolive factory in Salford Quays’ new Media City boundary. The Carlyle Group’s Soapworks is a major regeneration project with a gross development value of circa £70 million that is set to transform the historic site into a commercial hub, creating new employment opportunities and revitalising the Exchange Quay area. The

Evergreen-funded part of the project alone is set to deliver 1,350 jobs and will act as a catalyst for further phases of the Soapworks development which will create up to 2,500 jobs.

The secured financing will allow construction of the second phase of the Soapworks development, blocks A, B and C, to commence early in 2013, with completion expected by the end of that year, providing c.210,000 sq ft of Grade A, shell and core office space. This follows the completion in October 2011 of the first phase of the project, the 20,000 sq ft Boilerhouse, which is already fully let to engineering firm Vital Services. The final phase of the Soapworks project, Block D, will add a further 170,000 sq ft of office space when it is completed at a later date.

The North West Evergreen Fund, which is made up of 16 local authority limited partners was established to provide funding to support real estate projects which are critical to the region's economy, generating jobs and growth. It is capitalised through the European Regional Development Fund (ERDF) and other public money allocated under the Joint European Support for Sustainable Investment in City Areas (or “JESSICA”) initiative, which is managed by the European Investment Bank in the North West on behalf of the Homes and Communities Agency. The application to the EIB was led by the Association of Greater Manchester Authorities. The Soapworks project exceeded the regeneration targets covering employment, remediation and floor space outputs and, as such, was granted the maximum amount that the Evergreen Fund could provide.

The Evergreen model provides loan funding to be invested in projects which will generate a financial return and will then be recycled back into the fund to help support further projects. The fund is advised by CBRE Indirect Investment Services Limited, the FSA regulated arm of CBRE Real Estate Finance, and co-chaired by Manchester City Council and Lancashire County Council.

www.soapworks.com

ABSTRACT ANNOUNCES START ON SITE FOR ‘RENAISSANCE’, CROYDON

Abstract (Croydon) Limited – a wholly owned subsidiary of Mark Glatman's Abstract Securities – has announced that on site construction works commenced on 11 June 2012, for a speculative high- quality office scheme, ‘Renaissance’ at 9-16 Dingwall Road, Croydon, close to East Croydon station. The building will have an end investment value of £35 million and it will be able to accommodate around 1100 staff when it completes on 12 August 2013.

L-R - Councillor Eddy Arram, Mayor of Croydon, Jon Rouse, Chief Executive of Croydon Council , Mark Glatman

The company will build 100,000 sq. ft. of 'Grade A' office space, on the 1.13 acre site with rents from just £22 per sq. ft. – significantly undercutting rental levels for other prospective new builds in Croydon and the South East and representing the most cost effective new build offices within the M25.

The building will offer an extremely high specification and will comprise five floors offering well designed, very flexible floorplates of 20,000 sq. ft., which will be easily capable of subdivision. Targeting a BREEAM 2011 'Excellent' environmental accreditation, it will be one of the first speculative office buildings in the UK to achieve this standard. It will also achieve an EPC ‘B’ rating.

Mark Glatman, Chief Executive of the Abstract Group said: “We are delighted to confirm our move to start construction in such a short time scale, since our purchase on 6 January and achieving planning consent on 30 March.

“Renaissance is Croydon’s first speculative commercial office development in 20 years and starting construction so quickly underlines Abstract‘s commitment and confidence in the regeneration of Croydon. We are confident that Renaissance will let at an early stage given the value for money package on offer of low rent, superb quality and the location of the building. This has to be the only speculative new build in South London offering such a cheap rent without compromising on build quality and representing great value to end users.

“Croydon has been overlooked by Central London occupiers for many years, but now offers a very compelling story. In addition to substantial infrastructure investment over the last few months, it is also the focus for other significant investment, not least in its retail offering. It has fantastic transport links – East Croydon Station is the second busiest station in the UK with a 16 minute travel time to Victoria, 12 minutes to London Bridge and 14 minutes to Gatwick Airport. The tram offers a connection as far west as Wimbledon.

“Companies with a heavy administrative presence in Central London must be focusing on their cost base and the ‘Renaissance’, Croydon story in compelling. For instance the comparison to Victoria in total occupational cost will be around one third at Renaissance.”

The building has been designed by Gary McCarthy at Andrew Lett Architects. Agents Sinclair Clark and Knight Frank have been appointed to market the new office scheme.

Further information on ‘Renaissance’, Croydon, is available from:-

http://www.renaissancecroydon.com

Further information from pauline@skylarkpublicrelations.com or 07833 490964

PLANNING CONSENT GRANTED FOR ABSTRACT SECURITIES' 'ST VINCENT PLAZA', GLASGOW

Abstract (Glasgow) Ltd – a wholly-owned subsidiary of Mark Glatman’s Abstract Securities Ltd – has announced that planning consent has been granted for its speculative 170,000 sq. ft. 'St Vincent Plaza' development for Glasgow City Centre.

This 'Grade A' building will offer a specification rarely seen outside Central London and will comprise basement, ground and ten upper floors together with 78 car parking spaces. The development is likely to be one of the only speculative office schemes of its size in the UK and will be priced from just £23 per sq. ft. – a significant discount on current headline rents in the city.

Now that planning consent for this landmark development, located at the gateway to Glasgow's Central Business District, has been granted, site enabling works followed by full construction will start in the next few weeks. The scheme will complete towards the end of 2013.

Just minutes' walk from both Charing Cross and Anderston train stations, St Vincent Plaza will also offer immediate access to the M8 as well as several bus routes and is within easy walking distance from Glasgow's main retail and leisure zones.

Abstract’s Development Director, Christopher McPherson, said: "We are very pleased to announce that we now have planning consent for St Vincent Plaza and can realise our vision of creating an extremely high 'Grade A' specification development in Glasgow's International Financial Services District. Our scheme will be one of the key elements in the next phase of the IFSD and will help to attract high-profile occupiers to the city, which in turns means more local employment and growth for Glasgow.”

Mark Glatman, Chief Executive of Abstract Securities, said: “Glasgow City Council has recognised that in order to attract yet more big-name corporates to the city, it is imperative that Glasgow can offer high-quality 'Grade A' office accommodation at an achievable cost. St Vincent Plaza is all about offering value at a time when occupiers have to keep a very close eye on the bottom line and cannot justify heavy costs. By coming to the market with a top-quality product and quoting rentals from £23 per sq. ft. we are significantly undercutting the established Glasgow market and offering exceptional value for money as well as significantly reduced operational costs. We are offering a very rare opportunity to take 'Grade A' space that costs less than some second hand space in Glasgow.”

Councillor Gordon Matheson, Leader of Glasgow City Council said:“The creation of St Vincent Plaza is another sign that private investors and developers retain a lot of confidence in Glasgow, and will be a welcome addition to our high-quality office accommodation. The confidence that firms aiming to use Grade A business space will find this an attractive location shows private investors’ faith in the city and points to Glasgow’s economic wellbeing. I wish all those involved in the project every success.”

St Vincent Plaza will offer flexible, virtually column free floorplates of 17,000 sq ft, a feature penthouse level with terrace, and some of the best views in the City. The building is designed to a BREEAM ‘Excellent’ standard and an EPC 'B' plus rating. It will provide the most efficient and environmentally friendly office accommodation in the city and will be delivered into a market where available ‘Grade A’ supply has all but disappeared.

The scheme has been designed by Glasgow-based Keppie Design. Bowmer & Kirkland have been appointed as the contractor. CB Richard Ellis has been appointed to market St Vincent Plaza with a second agent to be appointed duly.

CGI shows: St Vincent Plaza, which will be built at 303 St Vincent Street by Abstract (Glasgow) Ltd. Please visit www.stvincentplaza.com

For media information, please contact Pauline Gregory on 07833 490964 or Pauline@skylarkpublicrelations.com or Lisa Mennie 07825 225 414

lisa@skylarkpublicrelations.com

ABSTRACT SECURITIES TO BUILD 170,000 SQ. FT. OF 'GRADE A' OFFICE SPACE ON GLASGOW'S ST VINCENT STREET

Abstract (Glasgow) Ltd – a wholly-owned subsidiary of Mark Glatman’s Abstract Securities Ltd – has announced that it has exchanged missives to acquire a site at 303 St Vincent Street, Glasgow, on which it will speculatively build 170,000 sq. ft. of 'Grade A' office space, priced from £23 per sq. ft. (a significant discount to headline rents in Glasgow).

The building – provisionally known as St Vincent Plaza – will offer a specification rarely seen outside Central London and will comprise basement, ground and ten upper floors together with 78 car parking spaces. The development is likely to be one of the only speculative office schemes of its size in the UK.

A detailed planning application for this landmark development, located at the gateway to Glasgow's Central Business District, is being submitted today following extensive discussions with Glasgow City Council and construction will commence in Spring 2012. Completion of the scheme will be in the third quarter of 2013, ahead of Glasgow's Commonwealth Games. Just minutes' walk from both Charing Cross and Anderston train stations, St Vincent Plaza will also offer immediate access to the M8 as well as several bus routes and is within easy walking distance from Glasgow's main retail and leisure zones.

Abstract’s Development Director, Christopher McPherson, said: "St Vincent Plaza has been designed with an extremely high 'Grade A' specification, including, flexible, virtually column free floorplates of 17,000 sq ft, a feature penthouse level with terrace, and some of the best views in the City. The

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building is designed to a BREEAM ‘Excellent’ standard and an EPC 'B' plus rating. It will provide the most efficient and environmentally friendly office accommodation in the city and will be delivered into a market where available ‘Grade A’ supply has all but disappeared."

Mark Glatman, Chief Executive of Abstract Securities, said: “We have exchanged missives to purchase a key site in Glasgow City Centre, on which we will speculatively build 170,000 sq ft of office space with a specification only usually found in central London.

“With Abstract, quality and environmental performance is a given, but this scheme is all about value at a time when corporate occupiers have to have a close eye on the bottom line and cannot justify

heavy costs. With tight design and procurement we are able to bring this building to the market quoting rentals from £23 per sq ft very deliberately and significantly undercutting the established Glasgow market. Furthermore, it is likely that an occupier of this building will have total occupational costs significantly lower than some second hand space in the Central Business District. Before selecting this site we reviewed all the major central development opportunities in the City and this was the only one where it was feasible to deliver a top quality building at such a competitive price.”

“Glasgow has changed considerably in the last few years to become a cosmopolitan city with a great workforce and a high standard of living. It has a strong pool of graduates and a proactive business

environment, with funding initiatives such as RSA grants making it a very attractive business location. We have absolute confidence that our product is in the right place, at the right time and at the right cost. To begin the process of realising our vision we will start site enabling works in the next few weeks to enable construction of the new building to start in early 2012.”

St Vincent Plaza has been designed by Glasgow-based Keppie Design. Bowmer & Kirkland have been appointed as the contractor. CB Richard Ellis has been appointed to market the space with a joint agent to be announced imminently.

CGI shows: St Vincent Plaza, which will be built at 303 St Vincent Street by Abstract (Glasgow) Ltd -Ends-

For media information, please contact Lisa Mennie at Skylark PR on 07825 225 414 /

lisa@skylarkpublicrelations.com