Representing the largest letting in the North East office market, Sage has agreed new leases on 203,728 sq ft, across two adjacent buildings, Cobalt 22 and 23, the latter of which is also known as the Zeta building, and 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 will invest in a complete re-fit, providing a world class office experience for employees, customers and partners.
Sage will move its flagship offices from Great North Park, Newcastle upon Tyne, where it located to in 2003, to Cobalt Business Park in 2020. Circa 2000 Sage colleagues and all new hires will benefit from the newly refurbished technology hub.
Guy Marsden, director of Highbridge Properties, developers 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 UK. It employs over 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.