Tech giant Sage will move to two buildings at Cobalt Business Park in the biggest out-of-town deal ever recorded in the North East.
The software giant hinted last week at a potential move from its current base at Great Park, Gosforth, after 15 years at the site.
Now Cobalt developers Highbridge Properties, and Moorfield, the 海角视频 real estate private equity fund manager, have secured Sage as a new tenant at Cobalt 22 – the now empty offices of former energy consultancy Utilitywise – and Cobalt 23.
Sage has agreed new leases on 203,728sqft of space across the two neighbouring buildings, representing the largest letting ever completed in the region
Cobalt 23, also known as the Zeta building, was acquired by Highbridge Properties and funds under management by Moorfield in 2017.
Sage has agreed a 15-year lease with a 10-year break clause on Cobalt 23.
Sage announced it will invest £40m in the North East over the next three year creating jobs, improving its customer experience and strengthening its technology – and part of those plans will involve a complete re-fit of the new Cobalt offices, to provide a world class office experience for employees, customers and partners.
The big move from Great Park in Gosforth won’t take place until 2020, when around 2,000 Sage colleagues and all its new hires will benefit from the newly refurbished technology hub.
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Guy Marsden, director of Highbridge Properties, developers and part-owners of Cobalt Park, said: “This letting is a massive endorsement of the quality and strength of the Cobalt brand. We are pleased to secure the letting of such a high-profile employer and the benefits this will bring to the Newcastle region.”
Charles Ferguson Davie, chief investment Officer of Moorfield Group, added: “We identified this building, in partnership with Highbridge, as an opportunity to provide high quality office space in a desirable location and that is benefitting from substantial local infrastructure improvement.
“The decision by Sage to relocate its office to Cobalt Park supports the original strategy and will encourage continued growth in the area.”
Highbridge’s Cobalt Park is the largest office park in the 海角视频. It employs more than 14,000 people and is home to numerous global brands including Accenture, Siemens, DXC and Proctor & Gamble.
Aidan Baker from BNP Paribas Real Estate added: “The letting of Cobalt 22 and 23 is hugely significant for Cobalt Park, not only is the deal the largest out of town letting ever recorded in the north east market, but marks the disposal of the final new fully fitted building on site in Cobalt 23.
“These lettings will return occupancy on the whole of Cobalt Park to 87% and continues to illustrate the demand for high quality sustainable office buildings with excellent amenities and car parking.”
Highbridge and Moorfield were advised on the transaction by Aidan Baker at BNP Paribas Real Estate and Alex Hailey at CBRE.
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No office letting of recent years comes even close to the size and scale of Sage’s forthcoming move from Newcastle to North Tyneside.
Within the city centre, Convergys took on 35,000sqft of Grade A space when it became sole tenant of The Rocket at Stephenson Quarter in 2016, and Eldon Insurance later took on 21,000sqft at 2 St James Gate.
City centre space of such scale is scarce, giving out-of-town schemes like Cobalt and Quorum Business Park an advantage.
However, the Bank House Square site – set on the eastern side of Pilgrim Street and includes the former Bank of England plot – has the potential to create for up to 400,000 sqft of commercial office space.
Meanwhile, the Lumen office building is taking shape at Newcastle Helix. The 106,000sqft of grade A space is due to complete next year, and it is anticipated a second building, called The Spark, will quickly follow the first, providing a further 100,000sqft of office space when finished in 2021.