Orchard Street agrees £37 mln. HQ funding at Brookgate's CB1 development (UK)

Orchard Street Investment Management LLP, Brookgate and Microsoft Research have concluded a £37 million (approx. €43 million) tripartite agreement to provide a new 77,000-ft² (approx. 7,000-m²) headquarters building for Microsoft Research at Station Road, Cambridge, as part of Brookgate's CB1 development.

Microsoft Research

Construction of the building will begin immediately, with occupation expected at the end of 2012.

Construction of the building will begin immediately, with occupation expected at the end of 2012. The project is fully funded by UK pension fund clients of Orchard Street.

Gary Felce, Partner at Orchard Street, said: "We are delighted to have concluded this transaction. It is a great investment for our client, with a long lease to a top quality tenant. It is also a landmark transaction for the Cambridge city center office market, setting a new tone and a standard for the next wave of development to follow."

Sven Topel, Chief Executive of Brookgate, said: "This is a major step forward for the commercial development within CB1 and the arrival of Microsoft Research is a great testament to the project. The building is the first new city center office building in Cambridge for more than 25 years. We are delighted to have the financial support of Orchard Street, with whom we have worked very well over the winter to conclude this complex tripartite deal."

The scheme will be the first of a new generation of office buildings within the 26-acre CB1 development, adjacent to Cambridge mainline station. The CB1 masterplan creates a new gateway to Cambridge and will provide 600,000 ft² of commercial space, 630,000 ft² of residential, key worker and 1,000 student rooms, plus retail, restaurants and bar. The project also provides a refurbished station concourse and new public square, new transport interchange, high quality hotel and multi- story car park.

Orchard Street was represented by Lambert Smith Hampton while Bidwells advised Brookgate. Microsoft Research was represented by Jones Lang LaSalle.

Source: FD

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