Hemel Hempstead Agreement (1029I)

TIDMSVO TIDM72NS

RNS Number : 1029I

Serviced Office Group PLC

09 June 2011

Serviced Office Group plc (SVO)

Appointment to manage major BT property at Hemel Hempstead

Serviced Office Group plc ("SVO" or "the Group") is an AIM-listed provider of flexible office space, which now operates from 23 centres providing a total of 5,327 work stations

Serviced Office Group plc has signed a five-year management agreement with British Telecommunications plc ("BT") to take-over and manage BT's 175,000 sq. ft office property in London Road, Hemel Hempstead. The Group will progressively refurbish and re-fit the property, creating both serviced office accommodation and high-quality office space for letting on conventional lease terms.

The property comprises four blocks of modern office space on three floors, with ancillary facilities including a triple height atrium; large car park; floor-to-ceiling windows on all sides of the building; high spec IT and communications; a full service canteen; large conference and meeting room facilities. The property is well served by both public transport and rail services nearby, with quick access to the M25.

SVO will initially take on one 32,000 sq. ft block, and has already pre-sold 22% of the space both to existing clients in its current Hemel Hempstead property, which is being vacated, and to new clients. The block requires a complete design and re-fit to make it suitable for use as serviced offices and, with SVO's skills in delivering such projects on time and on budget, is due to open on 11 July.

Michael Kingshott, Chairman, comments:

"The addition of a fourth BT property to our portfolio demonstrates a relationship which works well for both us and BT. We have demonstrated to BT that we are able to significantly reduce its void costs, enhance its properties and ensure that surplus space is generating income.

"Hemel is a very active market and we have had a promising number of leads and signings for this new property. We are pleased to be able to continue to accommodate our existing clients and to demonstrate our support of them by assisting with their move to the new building, both financially and logistically."

9 June 2011

Enquiries:

 
 Serviced Office Group plc              Tel: 020 7550 5500 
 Michael Kingshott, Chairman 
 Elizabeth Scannell, Finance Director 
 
 Evolution Securities                   Tel: 020 7071 4300 
 Bobbie Hilliam 
 
 College Hill                           Tel: 020 7457 2020 
 Gareth David

This information is provided by RNS

The company news service from the London Stock Exchange

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