Office buildings in regional areas are becoming increasingly popular assets for property funds and firms as the number of start-ups in Britain continues to grow and expanding firms seek new premises. This has seen Legal & General Property snap up One Cathedral Square in Blackburn in a pre-sale agreement with Maple Grove Developments, with the fact that the property has not yet been completed an indicator of the strength of the commercial property market in the northern town.
Once completed, the property will offer 32,000 sq ft of grade A office accommodation in the heart of Blackburn’s upcoming Cathedral Quarter development, which will also comprise of a Premier Inn and numerous restaurant units surrounding a new public square and public transportation interchange. The £9.1 million price tag reflects a yield of 4.6 per cent for Maple Grove Developments, which is part of the Eric Wright Group.
Director of the development firm, Andrew Dewhurst, says; “One Cathedral Square will be the first Grade A office building completed in Blackburn town centre for 20 years.
“Designed by BDP, and sited between the cathedral and railway station, the building will give occupiers the chance to re-locate into modern, efficient office space with excellent sustainability credentials.
“The transformation of this part of the town centre is now becoming a reality as building works advance at a pace.”
One Cathedral Sqaure is currently pre-let to Blackburn with Darwen Borough Council and will be on lease for the next 25 years, although the council will not actually occupy the modern office property. Rather, the council will let out the property in association with agents at Knight Frank and Trevor Dawson and Co., allowing the local authority to elevate income and channel investment back into the wider regeneration of Blackburn town centre.
The Cathedral Quarter development is due to be completed this autumn, and has received significant financial support from the Lancashire Local Enterprise Partnership (LEP), the European Regional Development Fund and Blackburn with Darwen Borough Council. It is hoped that the regeneration scheme will attract a growing number of established firms to Blackburn, thus boosting both the regional economy and the town’s prestige as a business destination.
Head of long income transactions at Legal & General Property, Adam Kerr, believes that One Cathedral Square will prove to be a pivotal property in the town.
He says; “Forming a key element of the major regeneration of Blackburn town centre, sitting at the heart of the new interchange with the bus station, rail station and Cathedral, we believe that this Grade A office building will become an important hub for business in the region.”
Councillor Andy Kay, Blackburn with Darwen Borough Council’s executive member for resources, adds; “Legal and General’s first acquisition in Blackburn town centre demonstrates to us that the sustained investment in the town centre by ourselves and other partners is continuing to pay dividends.
“The location of this stunning, ‘city style’ office building, in the setting of Lancashire’s Cathedral will make it one of the most prestigious business addresses in the region.”
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