Woking: Lamron and SJR obtain forward funding for spec office
Lamron Estates and SJR Properties have entered into a £40 million forward-funding deal with Royal London Asset Management (RLAM) to speculatively develop an 82,750 sq ft office scheme in central Woking. The scheme, designed by architect Scott Brownrigg, has already gained planning consent.
The seven-storey development on Chertsey Road will provide 77 car spaces. Completion is anticipated in mid-2018, and rents are forecasted to be substantially in excess of £30 per sq ft. The parties said the scheme will be "designed to a high specification comparable to offices found in Central London.”
The deal, arranged by BNP Paribas Real Estate, represents one of the few speculative fundings being undertaken in the current cycle. It reflects the investors' confidence in the undersupplied Woking market.
Malcolm McPhail, managing director of Lamron Estates, said: “We are delighted to be working with Royal London to deliver this outstanding office scheme to the market early in 2018. This will be one of the few large new build schemes to be constructed not only in Woking but the whole of the South West quadrant of the M25 in recent years, supplying much needed Grade A space in the area.”
Andrew Johnston, fund manager at RLAM, said: “Lamron Estates is an experienced developer of high-quality buildings and we look forward to working with it in order to secure a successful development.”
BNP Paribas Real Estate arranged the funding on behalf of Lamron Estates and SJR Properties; Griffiths Eccles acted for Royal London Asset Management.
Research from BNP has forecast rental growth in Woking to be among the highest in the South East office market in the coming years. It said: "The town has benefited from significant occupational demand and take-up while availability has fallen to its lowest level since 2008, with grade-A accommodation in particularly short supply.”
Lamron Estates is also developing a 48,500 sq ft office scheme with McKay Securities on London Road, Redhill, which is due for completion in July of this year.
Credit: CoStar
