£40M MERGER DEAL CREATES UK’S CLEAR LEADER IN ONLINE PHARMACY

A merger deal backed by £10m of investment from BGF (Business Growth Fund) today created a clear, digital-only leader in the UK online pharmacy sector.

The merger between leading online pharmacy companies Pharmacy2U and ChemistDirect.co.uk creates a business with a 1.5 million customer base and unrivalled experience in digital pharmacy services.   

It follows the opening of Pharmacy2U’s brand new £3.5m dispensing hub in Leeds - the first of its kind in the UK – earlier in 2016.  The facility is capable of dispensing one million prescription items a month.  

The new business will have a broad consumer offer, including:

• A fully managed online home delivery prescription service for NHS patients, including clinical advice from pharmacists.  This is a growing area of opportunity under the England-wide electronic prescription service.
• Online doctor consultation services for a wide range of common conditions in areas including womens’ health and mens’ health, travel health precautions and skin conditions.
• A range of over 6,000 health and wellbeing retail products

BGF has provided a £10m investment to support the merger and the new company’s ambitious long term growth plans. The total value of the deal is in excess of £40m.

The Chief Executive of the new combined business will be ChemistDirect.co.uk Chief Executive Mark Livingstone, who has a strong track record in innovative internet-based businesses including LoveFilm and Graze.com.

Founder and Superintendent Pharmacist of Pharmacy2U Daniel Lee, who pioneered internet pharmacy in 1999, will take the role of Chief Operating Officer. 

Mark Livingstone said: “This is a landmark moment for internet pharmacy in the UK.   We are creating the leading ‘pure play’ business in the sector - with unrivalled experience, facilities and scale.

“It is the beginning of a new era of convenience and choice for millions more patients, as we open up the full potential of internet pharmacy for the first time.

“BGF has confidence in our plans, and their long-term, minority partner approach was the right fit for the business.” 

Daniel Lee added: “Online pharmacy has now come of age, with 80 per cent of GP surgeries now using the NHS Electronic Prescription Service and patients keen to shop online for health and wellbeing products. 

“Increasing numbers of patients are also seeking the support of online doctor services. This merger means that we are in an unrivalled position to respond to the growing demand for these innovative services.”

BGF is providing £10m of investment to enable the management team at the new combined business to deliver online pharmacy and GP consultation services to millions more patients. 

BGF has up to £2.5bn to invest in small and mid-sized companies across Britain. Since 2011, it has backed more than 125 businesses with over £850m of long-term capital. 

Richard Taylor, BGF said: “This is BGF’s second significant investment since the Referendum vote, demonstrating that there are business owners and management teams that are forging ahead with their plans. That is a positive sign. 

“No one knows the outcome of the next few weeks, but now is not the time for business to start putting the brakes on. Now is the time to keep investing, keep partnering and keep innovating – and that is something we are wholeheartedly committed to doing.”

The investment was led by BGF’s Richard Taylor, Chris Boyes and Rob Johnson. Richard Taylor will join the board of the combined business.

ENDS/

OAS DEVELOPMENT AWARDS - AND THE WINNERS ARE...

By Paul Norman

The winners of this year’s prestigious Office Agents Society (OAS) Development Awards have been announced this afternoon at packed event at The Pavilion at the Tower of London with well known UK office developer Mark Glatman of Abstract picking up this year’s Outstanding Individual Achievement award.

CoStar News Editor Paul Norman joined well-known political broadcaster and journalist Steve Richards at an event attended by more than 300 people today to hand out the awards.

The OAS Development Awards recognises excellence in office development and transactions across the wider UK and City of London & West End markets and focuses on major schemes or deals completed between January 2015 and December 2015.

The categories were: Deal of the Year, Development of the Year, Fund/Developer of the Year, Outstanding Individual Contribution of the Year.

The event raised money for disabled children’s charity KIDS.

The winners were as follows:

Best Development Outside London, sponsored by Cushman & Wakefield: No 1 Forbury Place in Reading, M&G Real Estate and Bell Hammer (pictured above); leasing agent CBRE and Campbell Gordon.

Best deal outside London, sponsored by U&I: 2 Arena Central, Birmingham – letting to HSBC by Arena Central Developments and Pro Vinci. Disposing agent was CBRE and acquiring agent was Bilfinger GVA.

West End Development of the Year, sponsored by the West End Office Agents Society – Blackstone, Adelpi

West End Deal of the Year, sponsored by LAH Property Marketing - One Strand – EQT and 1 Strand (pictured), agents were Savills, Colliers, JLL and Bluebook

City Development of the Year, sponsored by City Agents Club – Resolution, Alphabeta

City Deal of the Year, sponsored by CoStar - Brookfield – 100 Bishopsgate letting to Royal Bank of Canada. Agents were Knight Frank, GM Real Estate and JLL

Fund/ Developer of the Year, sponsored by the Office Agents Society – Landid/Brockton Capital

The Outstanding Individual Achievement – Mark Glatman, chief executive officer, Abstract Securities.

pnorman@costar.co.uk

SOAPWORKS SECURES RECYCLED/REFURBISHED WORKPLACE AWARD AT BCO AWARDS

Commercial development, Soapworks, has won the title of best Recycled/Refurbished Workplace at the British Council for Offices (BCO) North West, Northern Ireland and Wales Awards.

The iconic development was recognised for its innovative design and remarkable commitment to ensuring that the historic elements of the original building remained throughout the regeneration of the former Colgate Palmolive Factory. 

Soapworks was commended as a highly desirable workplace destination when the development was awarded Regional Deal of the Year at last year’s MIPIM UK awards, in recognition of its landmark agreement with broadband provider TalkTalk. The national telecommunications business took 106,000 sq ft on a 15-year lease, making it the largest letting of speculative office space in Greater Manchester in 2015. 

The letting was secured by global alternative asset manger The Carlyle Group and its joint venture partners Nikal and Abstract Securities. Soapworks is now 90 percent let, after securing other significant lettings with The Home Office and global engineering firm MWH Global Ltd.

Ben DuBoulay, director at The Carlyle Group, said of the win: “Soapworks’ award winning design is testament to the unique vision of shedkm. The team’s understanding of how to utilise the building’s original features to create a magnetic place to work is worth celebrating, and we are thrilled to have won Recycled/Refurbished Workplace at the BCO Awards. 

“The success of Soapworks is owed to our team’s hard work, and demonstrates how being creative and ambitious with new regeneration projects can create new and innovative working environments in the North West.” 

TWO PRESTIGIOUS AWARDS FOR AKER SOLUTIONS' HQ AT ABERDEEN INTERNATIONAL BUSINESS PARK

Abstract Securities and joint venture partner Aker ASA, have announced that Aker Solutions’ new office HQ – at Aberdeen International Business Park - has won two prestigious awards presented by the British Council for Offices and the Royal Institution of Chartered Surveyors.

The British Council for Offices (BCO) presented Aker Solutions' HQ with a highly-prized Corporate Workplace Award at its Scottish Awards ceremony on 16 April.  The development will now progress to the UK National Awards in October 2016.  

The BCO Corporate Workspace Award recognises exemplary standards in buildings commissioned by owner-occupiers, or where the building has been customised by a developer for the occupier. The winner was judged on the combined merits of its base build and fit-out. 

The building also won the Commercial Development of the Year Award at the RICS Scottish Awards. Again, the project will progress to the RICS Awards Grand Final in October 2016.

The commercial category of the RICS Awards honours an excellent commercial property development whether retail, office, leisure, industrial or mixed use.  

Abstract and Aker delivered three interlinked office buildings that extend to 335,000 sq.ft. of net internal area, comprising the first phase of Aberdeen International Business Park. The buildings are designed to accommodate up to 2,400 employees and include a gym, sports hall, squash courts, internet delivery room and a nursery.

Completed and handed over on time and on budget in February 2015, the project achieved BREEAM 'Excellent' and EPC 'A' ratings and was completed in just 77 weeks including a complex 'Category B' fit-out. The space was let to Aker Solutions in what is believed to be Scotland's biggest ever single office letting transaction.

The 40 acre office park is located immediately opposite the entrance to Aberdeen International Airport on Dyce Drive, approximately six miles to the North West of Aberdeen City Centre. 

Mark Glatman, Chief Executive of Abstract Securities, said: “'Abstract is delighted that Aker Solutions' new headquarters at Aberdeen International Business Park has been honoured by not one, but two major and highly prestigious awards presented by the BCO and RICS.  

“We and our architect Keppie Design worked very closely with Aker Solutions throughout the entire design process to create a superb working environment, with first class amenities, that satisfies the needs of the business while creating an ideal workplace/lifestyle balance for the staff. We are very pleased at the accolades given to the project by the BCO and RICS, which showcase our philosophy of delivering high quality, cost effective and sustainable developments.”

Main contractors on the project were Bowmer & Kirkland and the architect was Keppie Design. Other consultants included Turner & Townsend (project managers), DSSR (M&E engineers), Mott MacDonald (engineering consultants) and Turkington Martin (landscape architects).

For information on Aberdeen International Business Park, please visit www.aibp.co.uk

Further media information: Lisa@skylarkpublicrelations.com / 07825 225414 pauline@skylarkpublicrelations.com / 07833 490964

MAJOR NEW OFFICE DEVELOPMENT TO SPEED UP BASING VIEW REGENERATION

An experienced commercial developer is working with Basingstoke and Deane Borough Council to build new top class office space to meet the demand from employers looking to locate on Basing View.

The Borough Council’s Cabinet agreed at a meeting last night (Tuesday 15 March) to sell a 999 year peppercorn lease on a site the Council owns in Basingstoke’s Town Centre Business Zone to property developer Abstract Securities Limited.

The developer will build a new BREEAM excellent five storey 60,000 square foot office on the site, offering a high quality opportunity for a major new employer to move into or for smaller businesses wanting to grow in Basingstoke.

Abstract has a track record in delivering commercial office development and has recently successfully completed similar projects in a number of other locations in the UK.

The site has been cleared for development by the Council, which has also made a bid for support to the Enterprise M3 Local Enterprise Partnership for further work to enable construction to start as quickly as possible, subject to planning permission.

The offices would be built in the recently designated Enterprise Zone, making it even more attractive to new occupiers who would qualify for business rate reduction incentives.

The new scheme complements the work of the Council’s Basing View development partner Muse, which brought the new combined Waitrose and John Lewis store to the area. This partnership has focused on marketing the Business Zone to companies who want to design their own bespoke buildings for the developer to construct.

However, companies are increasingly wanting new developed office space rather than committing in advance to their own building that may take time to design and construct. There is a demand along the M3 for top quality office space which is available immediately that Basing View needs to meet.

Cabinet Member for Finance and Resources Cllr John Izett said: “Major regeneration of our principal business district, Basing View, is essential to ensure that Basingstoke companies can continue to grow and we can attract new employers, providing high quality job opportunities for our residents.

“By using our own land and working with an experienced speculative office developer with an outstanding track record, we have a unique opportunity to make new grade ‘A’ offices on Basing View viable.  It would be a catalyst to encourage other investors to develop there. This would help accelerate the pace of the regeneration of Basing View, as well as bringing 600 new jobs and boosting the local construction workforce.”

Mark Glatman, Chief Executive of Abstract said: “We are really excited by the prospect of building our next speculative office scheme in the South East in Basingstoke. We see huge unsatisfied potential in the local market and recognise many similar characteristics to those which underpinned our successes in Croydon and Gatwick. We hope to achieve an early start on site with a view to delivering a new building ready for occupation in late 2017.” 

Abstract contact – Mark Glatman 020 7747 8272