Kier Property and Investec advised by Haslams Chartered Surveyors have teamed up to buy the ‘Reading Gateway’ site. The development arm of the Kier Group and the lender of development and investment finance for commercial, residential and mixed-use schemes have agreed an equity joint venture to fund the 20.5 acre site. Located on the A33, close to junction 11 of the M4, the site benefits from existing planning consent for 425,000 sq ft of distribution. It is also allocated in the local plan for mixed-uses including residential, commercial, leisure and small scale retail.
Kier proposes to develop a comprehensive mixed-use scheme comprising approximately 250 new homes of mixed tenure on 11 acres, and a hotel and light industrial, trade counter space on the front nine acres. The completed scheme is expected to have an end value in the region of £75m.
Leigh Thomas, director for Kier Property, said: “We are delighted to be in a position where we can announce the purchase of this site. Our team, advised by Haslams’ Reading office, has worked extremely hard to make this deal happen and we are very proud to finally confirm this site purchase. We plan to progress very quickly and will be submitting planning in early January, with a view to start in the summer of 2015.”
Hayley Adams from Investec Structured Finance added: “The Reading deal is a great opportunity for Investec to partner with and support Kier once again. The site has significant potential and all parties worked together to successfully complete this transaction within a short timeframe. The deal highlights that we are committed to funding high quality sites, with well-respected and experienced real estate developers.”
Neil Seager, Partner at Haslams Chartered Surveyors commented “The market has been waiting for this site to come forward for a while and Kier’s and Investec’s timing is impeccable given the lack of development opportunities for occupiers, the lack of supply in the industrial market and recent surge in tenant demand. We are excited about the site and are already talking to a number of potential occupiers.”
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Neil Seager
BSc (Hons) MRICS