RCS - Boot(Henry) PLC - Henry Boot secures pre-let to Virgin Media O2

Henry BootAnnouncement

16/10/2024 07:00

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RNS Number : 3001I  Boot(Henry) PLC  16 October 2024

Henry Boot and GMPF secures 45,700 sq ft pre-let to Virgin Media O2 in
Manchester

 

Henry Boot announces that HBD, the group's property investment and development
arm, has pre-let 45,700 sq ft of office space to Virgin Media O2 at its JV
scheme with Greater Manchester Pension Fund (GMPF), Island, a premium £66m
GDV (our share £33m) development located in Manchester's Central Business
District.

In October, Virgin Media O2, the British telecommunications company, agreed to
pre-let a total of 45,700 sq ft across the top five floors on a 10-year lease,
which represents c.50% of the office space in the building.

Virgin Media O2 will relocate several regional sites into a single city centre
location, creating a northern hub that will host, among other teams, the
company's customer service agents who provide specialist support on a range of
customer issues.

The site was initially acquired by GMPF before HBD became a 50/50 joint
venture partner in 2019, assuming the role of development and project manager.
HBD achieved planning permission to develop Island in 2021 before building
works commenced in 2022. Once complete, Island will provide 91,000 sq ft of
prime workspace space across nine floors.

Employee wellbeing and sustainability are at the heart of this premium office
development which is targeting BREEAM 'Excellent' and EPC A ratings. HBD has
also signed a 5* NABERS Design for Performance Agreement with The Building
Research Establishment, with an aspiration of reducing energy further, where
possible, towards a 5.5* rating.

Island is expected to complete by the end of October 2024.

Tim Roberts, CEO at Henry Boot, commented: "Our joint venture with GMPF has
enabled the delivery of a truly outstanding office space in Manchester. This
landmark pre-let is testament to HBD's expertise in delivering sustainable
commercial office spaces that exceed occupiers' expectations and support them
in attracting and retaining the best talent.

Island's unrivalled sustainability credentials make it an attractive site for
a diverse range of occupiers and we look forward to welcoming more tenants
into Manchester's best-in-class office space to support their business and ESG
ambitions for many years to come."

Ed Hutchinson, Managing Director at HBD, said: "Virgin Media O2's decision to
invest in Island and call this remarkable building its new home in Manchester
is testament to the exceptional space we have created here. Island has been
carefully designed around the needs of the occupier.  Not only is it a highly
intelligent and sustainable building, but it's one which prioritises people's
health and well-being.  Virgin Media O2's values are perfectly aligned with
ours and we're proud to welcome them to Island."

 

At Island, Virgin Media O2 will enjoy a building which has achieved Well
Building Gold Rating. Designed to ensure that occupiers can be highly
inclusive, Island features design elements and spaces which support
neurodiversity, people of different faiths and gender identification as well
as spaces for nursing mothers.

 

Ed Hutchinson continued: "There is strong interest in the remaining space that
is available at Island, with plenty of options to join Virgin Media O2 across
the remaining four floors. "

 

Patricia Cobian, Virgin Media O2's Chief Financial Officer, said: "This
significant investment demonstrates our commitment to retaining a sizeable
presence in Manchester, with a flagship new office that places us in the heart
of the city's thriving technology hub.

"The state-of-the art office will provide a vibrant space for our employees in
the North West to get together in person and collaborate, meeting our needs
now and helping to attract future talent. Improving our people's experience
was a key focus in the selection process, and Island offers our employees a
wide range of amenities and facilities that are not currently available to
them.

"With enviable environmental credentials and excellent transport links, this
move will help reduce our carbon emissions and make it easier than ever for
our employees to choose more environmentally-friendly modes of transport."

Andy Burnham, Mayor of Greater Manchester, said: "It's very positive to see
Virgin Media O2 bring their new North West HQ to Manchester in a
state-of-the-art facility with net-zero carbon workspaces that enhance our
carbon neutral plans. This multi-million-pound investment will bring a
significant boost to the city-region and highlights Greater Manchester as a
place where companies want to invest."

 

OBI represented Island and CBRE acted for Virgin Media O2.

 

END

Notes to editors

 

Henry Boot is one of the UK's leading land, property development, home
building and construction businesses - and we've been transforming land and
spaces since 1886. Listed on the London Stock Exchange since 1919, we're
renowned for quality, expertise, delivery and a partnership approach across
the group - which comprises, Hallam Land, HBD, Stonebridge, Henry Boot
Construction, Banner Plant and Road Link.

 

Operating across the UK, and employing over 500 people, we focus on three key
markets: urban development, industrial and logistics and residential. Hallam
Land has facilitated 52,000 new homes since 1990, managing one of the top five
largest land portfolios in the country, with the potential to facilitate over
100,000 homes. HBD manages a development pipeline of £1.3bn, the equivalent
of 7m sq ft of developments across our key markets, while maintaining a £113m
investment portfolio, of which 73% of the properties have an EPC rating of 'C'
or higher. Stonebridge, our jointly-owned home building business, manages a
land portfolio capable of delivering 1,500 homes, with an ambition to deliver
up to 600 new homes a year.

 

Henry Boot Construction has extensive experience in both the public and
private sectors, including major projects such as the £200m regeneration of
Barnsley town centre, and The Cocoa Works, a £57m residential development in
York. For over 65 years, Banner Plant has supplied construction products and
services, operating from seven regional depots in the North of England.

 

We have also developed an ambitious Responsible Business Strategy to help us
meet our aim of being Net Zero Carbon by 2030, and to deliver, by 2025,
charitable, community and education work valued at £1m.

 

From land promotion, property development and investment to home building,
construction and plant hire, Henry Boot is where great places start.

 

henryboot.co.uk (http://www.henryboot.co.uk/)

Enquiries

 

FTI Consulting

Giles Barrie / Richard Sunderland/

07798 926814 / 07894 797067

henryboot@fticonsulting.com

 

Henry Boot PLC

Tim Roberts, Chief Executive Officer

Darren Littlewood, Chief Financial Officer

Daniel Boot, Senior Corporate Communications Manager

07825 088807

dboot@henryboot.co.uk

henryboot.co.uk

 

Deutsche Numis

Joint Corporate Broker

Ben Stoop

0207 260 1000

 

Peel Hunt LLP

Joint Corporate Broker

Ed Allsopp / Pete Mackie

0207 418 8900

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