Sale and Leaseback Plan as Vodafone Offloads Space at Newbury

Posted by UK Property Forums on 18th March 2022 -

Vodafone has instructed Colliers to undertake a sale and leaseback of its Newbury head offices.

The 2002-built campus called The Connection has seven buildings totalling 486,270 sq ft in 38 acres. Vodafone will remain the occupier of four of the buildings while the remaining three, Babbage House, Faraday House and Clarke House, totalling 210,492 sq ft, will be available for repurposing for other occupiers, or even redevelopment for sectors such as residential, life sciences, media or logistics.

The decision follows a six-month trial of blended working after the pandemic. Vodafone will take a long -term lease on its four selected buildings and invest in optimising those for its employees. Its blended working strategy involves a mix of home based, site-based and blended roles. The site will remain the company’s UK head offices.

David Fry, head of property at Vodafone UK, said: “We are fully committed to Newbury – the site will remain as our Vodafone UK headquarters, and continue to host the majority of our people. This is a change of ownership that ensures optimal use of the campus and allows us to re-invest funds back into our business to better serve our customers.”

Each of the seven buildings meets the same specifications: constructed of steel and concrete, three storeys high, with a full height central atrium. Each has its own energy supply with back-up generators as well as a secure surface car park. The site has a total of 2,222 spaces available across the campus.

Chris Lewis, head of office investment at Colliers, is leading the sale. He said: “The Connection is a unique opportunity for investors. Located equidistant from London and Bristol with a tenant that is committed to remaining in the area, it provides an undoubted long-term index linked income stream underpinning a refurbishment or redevelopment on the remaining site.

“The town has grown in recent years and with significant residential development now on the doorstep of The Connection further housing could be a strong option but the potential alternative uses aren’t limited to this and there will be many occupiers and investors keen to explore other angles, given the location and excellent connectivity to the motorway network.”

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