Puma Property Finance provides £33m to Basingstoke development
A project to transform a Grade II listed building in Basingstoke into a green workspace has received a £33 million development finance facility from Puma Property Finance.
The six-storey, 160,000 square feet Mountbatten house in Basing View was the former home of paper manufacturers, Wiggins Teape. It was acquired in a joint venture between Mactaggart Family & Partners and Longstock Capital in February of this year.
Hugo Denee, Partner of Longstock Capital said: “We are pleased to have achieved these milestones in our business plan and look forward to delivering the refurbishment of this iconic building together with William Laxton and the team at Mactaggart Family and Partners.
“Agreeing a virtual freehold with Basingstoke Council and signing the debt facility with Puma paves the way for construction to start.
“While completion is earmarked for Q1 2024, the combination of the strong environmental credentials with best-in-class design has already sparked robust interest from significant occupiers ahead of the launch of formal marketing this autumn.”
Designed by Peter Foggo in the early 1970s and opened by Lord Mountbatten in 1977, English Heritage has described Mountbatten House as one of the top ten post-war office buildings in the UK.
It features a series of cascading roof terraces designed by renowned horticulturalist and landscape gardener, James Russell, which have led locals to dub it the ‘Hanging Gardens of Basingstoke’.
Rahul Malde, Senior Manager at Puma Property Finance, said: “We are delighted to support this commercial office development with a strong focus on sustainability, and to be working alongside experienced counterparties in Longstock Capital and Mactaggart Family and Partners to bring this truly exciting project to life.
“Our appetite for the office sector remains predicated on delivering best-in-class ESG workspaces into local markets with robust occupier dynamics.
“We’re continuing to see a real flight to quality in the office market and we’re only going to see more demand for developments that can deliver high sustainability credentials, particularly considering new legislation set to require all commercial buildings to have a minimum EPC rating of ‘B’ by 2030.”
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The new development has been designed with sustainability in mind, having been designed to EPC ‘A’ rating, BREEAM Oustanding, WELL Platinum and Wired Score Platnum standards. It will be rebranded under the name of ‘Plant’ in tribute to the garden terraces and wider sustainability features.
The loan is Puma’s second substantial loan into sustainable office space in the last quarter, having already financed a £52 million office scheme in West London.
Councillor John Izett, Deputy Leader of Basingstoke and Deane Borough Council, said: “It is fantastic news that one of Basingstoke’s most recognisable buildings is to be reborn.
“The deal agreed with the new owners means substantial new investment into creating 21st Century offices that will be just what today’s businesses are looking for.
“In time it will also bring jobs and business rates for the council to direct towards services for our residents. I wish Longstock Capital every success in transforming the building and securing new business occupiers.”
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Image credit: Puma Property Finance
