Turnstone Estates - Offices Development - Chelmsford, New London Road

Date: 03 Jul 2006

Turnstone Estates has entered into a joint venture with Standard Life Investments, acting on behalf of RBS Pension Trustee Ltd, securing £16 million funding for a speculative office development in Chelmsford.

The scheme, called Priory Place, located on the junction of Parkway and New London Road, will comprise 42,238 sq ft (3,924 sq m) of grade A office space over five floors, with 80 car-parking spaces. Work is due to start in June this year, with completion scheduled for early summer 2007.

Chris Goldsmith, managing director of Turnstone Estates, comments: "High-quality office accommodation is in high demand in the Chelmsford area and there is next to no grade A supply. This market strength has given us confidence to build speculatively."

Paul Forshaw, a director in the national development team of CB Richard Ellis comments: "This speculative funding is a very positive sign for the office development market, demonstrating the improved confidence in the sector from institutional investors."

CBRE advised on funding and Taylor and Company are letting agents. Pardoe Properties advised Standard Life Investments.

The Priory Place site was acquired by Turnstone in 2000 as part of a portfolio that included Fenton House and Greenwood House, also on New London Road. Fenton House was sold in February 2005 for £7.83 million, reflecting a yield of 7.51%. Greenwood House was developed in partnership with Royal London.

CGI of the Priory Place office development

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