ADP has taken all of 2 Causeway Park as a raft of sizeable south east lettings move forward.
Canadian investment giant AIMCo and XLB have completed the letting of all of 2 Causeway Park in Staines-upon-Thames to payroll and HR solutions provider ADP to continue a strong start to 2022 for the South East offices market. The transaction was first reported by CoStar News and is the second 45,000 square feet-plus letting in the South East this year. It is the largest letting in Staines for seven years.
2 Causeway Park is a newly refurbished Grade A building totalling 47,500 square feet. The last deal over 40,000 square feet in the town was at 1 Causeway Park, also owned by AIMCo and XLB, which was prelet in part to Gartner in 2019.
ADP is based at Syward Place, 40-48 Pyrcroft Road in Chertsey.
Alexander Johns, partner at XLB, said: “We are thrilled ADP have chosen to relocate to 2 Causeway and welcome them to the building and wider park. To have comprehensively refurbished and relet the building during a pandemic, in a time of unprecedented challenges and change to the office sector, is testament to the quality of the building, the Causeway Estate and the team. We now look to secure a tenant for the remaining space in 1 Causeway and to deliver the Aldi and Lok’nStore later this year.”
Hugo Del Mar, senior director of corporate real estate at ADP, added that the building “fits well with ADP’s global sustainability program and the location works well for our UK business”.
Matt Willcock, head of London Metropolitan & South East at CBRE, added: “This is an extremely morale-boosting letting for the town and the wider market. As we emerge from the pandemic it’s fantastic to see occupiers moving forward with their real estate decisions and it will be the best in class buildings similar to 1 and 2 Causeway Park that will reap the rewards.”
CBRE advised the landlord; Cushman & Wakefield advised ADP.
AIMCo and XLB secured deals totalling 100,000 square feet with Aldi and Lok’nStore at the development last year. The supermarket signed a 20-year lease for a 20,000-square-foot store, while self-storage provider Lok’nStore leased 80,000 square feet on the floors above it.
The scheme is being delivered in the third quarter of 2022 and will form the first phase of development of the masterplan for the regeneration of Causeway Park. The duo is also developing 260,000 square feet of Grade A offices across new speculative office developments led by Building 1.
The deal continues a solid start to 2022 for South East offices with JP Morgan Global Alternatives having agreed a large off-plan prelet to Ultra Electronics at Foundation Park, Maidenhead.
Ultra Electronics, a defence and security contractor, committed to a new building of 56,000 square feet on a 20-year lease at a headline office rent of £35.75 per square feet, in a deal revealed by CoStar News.
CoStar News also understands that technology group Rapid7, advised by Savills, is in talks to take 19,000 square feet at M&G Real Estate’s 2 Forbury Place in Reading, relocating from Arlington Business Park in Theale. CBRE and Campbell Gordon advise M&G.
Office take-up in the South East and West London totalled 2,663,390 square feet last year, only 3% down on the 5-year average, according to BNP Paribas Real Estate.
The strong 2021 figures, which are 47% up on 2020, came despite the final quarter figure of 583,820 square feet being the lowest take-up of the year and 30% down on the third quarter.