Capsule drives flurry of lettings for Legal & General
18 Jul 2019
LGIM Real Assets (Legal & General), on behalf of its Managed Fund, announces that it has secured five new lettings at Apex Plaza in Reading, following its recent refurbishment.
The refit was undertaken as part of Legal & General’s new “Capsule” concept, which provides more flexibility in the leasing process. Capsule offers a range of options to suit occupier needs, moving away from the traditional Category-A fit out and longer lease length to fully fitted space let on a more flexible basis.
Since launch in 2018, Capsule has proven an increasingly popular option for occupiers. Demand has been driven by those in traditional space wanting a more personalised service, and from those in serviced space, now looking for their own private fitted offices to promote business stability and company branding.
Secured Capsule lettings within Apex Plaza have included 1,200 sq ft to The Open Ground Limited, 2,648 sq ft to TP Group and 802 sq ft to Resource Solutions Group PLC, all on five year flexible leases.
In part due to occupier demand for Capsule, just 27,427 sq ft in Apex Plaza remains available for rental. A further 7,500 sq ft is now being renovated under Capsule, with one unit already under offer.
Capsule is a re-imagined process offering flexible, high quality, furnished and work ready fitted office space throughout the UK. It is a mutually beneficial option, acknowledging the frustrations that send many occupiers towards flexible providers, while retaining the traditional benefits of leasing from an established provider. We have seen a growing demand for this kind of leasing solution and Apex Plaza is a great example of this. Across our Capsule portfolio, we are seeing falling void periods, quicker uptake of space and up to 20% additional returns to investors. This is a really exciting new option for the office sector.
Andrew Mercer, Office Sector Lead at LGIM Real Assets