Jobs created at Southgate Business Park after revamp
Jobs -creating companies have flocked to a business park in Peterborough.
Squarestone Asset Management, which owns the Southgate Business Park, in Orton Southgate, says it has secured full occupancy of the estate following a succession of deals - and helping to create scores of jobs.
The announcement comes four years after the company acquired the 90,000 sqft park for £11.5 million and carried out a refurbishment programme.
It has also been able to increase the rent from £12 per square fot (psf) to £14 psf – still below the national average of £18 psf.
The park, which is spread over four pavilions and a stand-alone hub, was 50 per cent let to Virgin Media on acquisition with four other tenants and some vacancy.
Following the revamp, a number of tenants have moved including the Yorkshire Building Society, which is leasing 15,00 square feet of ofices plus Simple Recruitment, which has 1,250sqft, Invios at 5,000sqft, and 5,000 sqft to another company in the medical industry.
In addition to new lettings, existing tenant Linden Homes extended its 10,000 sqft lease by 10 years.
Paul Coulter, founding partner, Squarestone Asset Management, said: “Peterborough is one of the UK’s fastest growing cities.
“As local government continues to develop the region’s economic prosperity by investment in infrastructure and industry, it is unsurprising this park has become fully let during lockdown. Tenants see the value in what out of town offices can offer if landlords invest to make their parks modern and attractive.”
Mr Coultier added: “When I first saw Southgate Park I immediately thought the superb location was undervalued at £12 psf being only 45 minutes on the train from Kings Cross.
“This, together with the quality of the pavilion design, highlighted obvious asset management opportunities.
“The park sits on a motorway junction of the A1(M) and on a strategic route into the city centre. The pavilions are well spaced out on a green park surrounded by mature woodland with an abundance of car parking.
“The pavilions themselves are low rise with the capacity to offer HQ tenancies at 20,000 sqft each or subdivision into 5,000 sqft self-contained and accessed suites.
“We moved the rents on to £14.50 psf but this is still well below the average UK wide out of town market of £18 psf.
“What is clear is that post lockdown tenants are demanding flexibility and affordability but also high-quality office space, car parking and well managed estates, with pleasant landscaping and amenity either on site or very close by.
“Astute tenants are taking space during lockdown to secure the best deals before increased demand puts pressure on rents for the best accommodation when everyone gets back to the office.”