BASINGSTOKE ‘INVEST TO GROW FUND’ FORWARD FUNDS NEW OFFICE FOR PHARMACEUTICAL GIANT, ELI LILLY AND COMPANY
Basingstoke and Deane Borough Council has forward funded a new office in Basing View for one of Basingstoke’s most long-established international occupiers, Eli Lilly and Company, through its pioneering ‘Invest to Grow Fund.’
This is the first project to be supported by the ‘Invest to Grow Fund’, which is aimed at stimulating commercial property and infrastructure projects within the Basingstoke area where there is a clear benefit to local employment, regeneration, environmental and economic prospects. All capital returns will be reinvested into future growth projects.
The Fund’s first investment will be to forward fund the construction of the new headquarters in Basing View. The building will be developed by Muse, the Council’s Development Partner at Basing View, and will be funded jointly by the Council, the Enterprise M3 Local Enterprise Partnership and the ‘Invest to Grow Fund’ who will contribute funding of £23 million to support the project. Work is scheduled to commence in Q3 2018, subject to planning permission.
The 46,000 sq ft building will provide a new office building in the heart of the town for Lilly, replacing their historic 11 acre campus on Priestley Road also in Basingstoke. This is the first pre-let office transaction in the M3 corridor for seven years and upon completion, the development will be the second largest asset in Basingstoke and Deane Borough Council’s extensive investment portfolio.
The £25 million fund, which is managed by CBRE’s Investment Advisory team, part of CBRE Capital Advisors, was launched at the end of 2016 to support a range of commercial and regeneration property and infrastructure projects within the local area.
The council’s Cabinet member for Property and Development Cllr John Izett said: “The investment aligns to the Council’s aims and it was the right for the council to step forward and use its financial resources to fund projects that keep jobs in our borough.”
“We rely on rents from our property portfolio and returns on our investments to help keep the council tax low. The fund will earn a much better rate of return than the council’s current cash investments, helping to maintain services, despite reducing Government support.”
“Together with the Florence building currently under construction, this pre-let new modern headquarters will help to strengthen Basingstoke's position as a key destination for businesses in the south east.”
“Invest to Grow projects are encouraged in sectors ranging from office, industrial, manufacturing and logistics to infrastructure, housing, renewables and low carbon schemes.”
We are delighted to have forward funded the development of this new office campus on behalf of the ‘Invest to Grow Fund.’ It represents the first capital commitment by the Fund and is critical in retaining high value jobs in the borough and is now the second office building to come forward in Basing View, alongside The Florence Building