Hines/Oaktree fill up Bracknell's Maxis with Panasonic-led flurry of lettings

By Paul Norman - Wednesday, January 10, 2018 15:00

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Hines has completed a string of office lettings totalling 85,000 sq ft at Maxis, Bracknell, the development it acquired in partnership with a fund managed by Oaktree Capital Management, taking occupancy levels to 96% and likely meeting the obligations required for its sale to Singapore's Frasers, CoStar News can reveal.

Global electronics corporation Panasonic has agreed to take 41,000 sq ft, establishing its UK headquarters across the ground and first floors of building one.

Hines has also secured leases with a trio of other IT companies.

JDA Software, a global software and consultancy company, has agreed to take 23,800 sq ft. US-based IT company Riverbed Technologies has signed for 16,600 sq ft, all on 10-year leases. In addition, Cyren, a company specialising in internet security technology, will be occupying 3,200 sq ft on a five-year lease.

The four lettings account for 86% of the 2017 Q4 take up for Bracknell, and Maxis has achieved 67% of the total 2017 take up of offices in the town, with the Panasonic deal representing one of the largest leasing transactions in the Thames Valley in 2017.

The deals rounded off a strong year for Maxis, following software company Cadence taking a lease on 22,300 sq ft, and the Allegis Group, the recruitment and staffing company, committing to 31,000 sq ft.

The flurry of lettings throughout the year brings the occupancy rate across the 200,000 sq ft Maxis campus to 96%, leaving a single remaining top floor suite of 5,400 sq ft available to let.

Raj Rajput, Managing Director, Hines UK, said: “This string of deals further demonstrates the quality of space Maxis has to offer the modern occupier. There is a real buzz around Bracknell at the moment. The recent opening of the new £240m Lexicon retail and leisure destination is a game-changer, breathing new life in to the town centre.

“The Bracknell office market has stood up well to its neighbouring locations in the Thames Valley. In securing the town’s headline office lettings, we are pleased with the part Maxis has played in Bracknell’s success story over the last 12 months. We are seeing encouraging interest for the remaining available space and look forward to completing full occupancy of the campus this year.”

Frasers Property entered into a conditional agreement in September of last year with Oaktree to buy Maxis subject to conditions relating to net operating yield and Maxis achieving an occupancy of at least 95%. If the conditions in the Maxis agreement were satisfied, completion of the acquisition would take place no later than 20 working days after 29 June 2018.

The net purchase price for the 199,000 sq ft Maxis development is £57m and Frasers Property intends to finance the deal in cash, funded from borrowings and internal resources.

At the same time Frasers Property International, a subsidiary of Frasers Centrepoint, confirmed it had entered into sale and purchase agreements with Oaktree Capital Management to acquire a portfolio of four other UK business parks for £686m.

JLL, Colliers International and Vail Williams are the joint leasing agents on the scheme. RDL Consulting acted for Panasonic.

pnorman@costar.co.uk

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