Kier and Investec have teamed up to buy one of Reading’s largest mooted development opportunities – Hewlett-Packard’s former home at the 20.5-acre Reading Gateway site.
Market sources this week said the duo had seen fierce competition to buy the site ahead of bidders including SEGRO to buy the site for circa £29m.
Lambert Smith Hampton and Mason Partners were appointed to sell the cleared island site seeking unconditional offers for the freehold interest earlier this year.
Market sources said Kier had been set to buy the site with Bellway Homes earlier but has now teamed up with Investec to complete the acquisition.
The site is identified as a South Reading Strategic Development Site, with a designation that shows for employment, residential, leisure and small scale retail.
It is understood the Kier and Investec are planning a major mixed-use scheme on the site in close proximity to Junction 11 of the M4 close to Green Park and the Madejski Stadium.
The site was previously home to 393,000 sq ft of two-storey office and research and development facilities with parking for 1,182 vehicles.
The buildings have been demolished and the site is largely vacant.
It currently has consent for 427,000 sq ft of distribution warehouses, a consent that was renewed in February 2014.
The previous planning history includes the original application for Hewlett-Packard which gained consent in 1978.
Officers have also previously supported proposals that would provide for a major office campus. The council has also identified the site as a location for significant residential development. Other uses that would be acceptable would include hotel use in conjunction with residential or commercial redevelopment.
Previous site owner Wharf Land worked up plans for both a major office-led mixed-use scheme and the distribution warehouse previously.
The company bought the site in 2007 after Hewlett-Packard decided to relocate staff to its offices in Bracknell.
Haslams is understood to have advised Kier and Investec.
Philip Hunter, director of Lambert Smith Hampton told CoStar News: “Reading Gateway is probably the most significant and exciting development opportunity currently in the South East.
“Lambert Smith Hampton is extremely pleased with the result achieved on behalf of our client. Our strategy was to generate fierce competition amongst a number of selected investors and developers, which resulted in a fully unconditional sale.”
Source: Paul Norman, CoStar UK
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Neil Seager
BSc (Hons) MRICS