CHELSFIELD, the property company run by Elliott Bernerd, is set to sell the European headquarters of Orange, the mobile phone group, in an estimated £120 million deal.
Chelsfield, which went private earlier this year following a £900 million management buyout, is in talks with DIFA, the German fund, about selling the building.
The property company has been selling off many of its investment properties to help to repay debt following the buyout deal.
The 235,000 sq ft building in London’s Paddington Basin was designed by Terry Farrell. Orange signed up to occupy the site in 2001, during the telecoms boom. At the time it hoped to move up to 3,000 staff into the glitzy new development.
However, by 2002 Orange decided not to move into the new building, which would have been expensive to fit out at a time when the company was seeking to cut costs.
Advertisement
The site has stayed empty since then, but Orange is still paying a 25-year lease on the building, at an estimated rental of £7.75 million a year.
The company is currently attempting to sub-let the property and is thought to be in talks with a potential occupier to lease a single floor, totalling about 18,000 sq ft.
Chelsfield is also preparing to sell the new headquarters of Marks & Spencer, located next to the Orange building in Paddington. The building, which was designed by Richard Rogers, is expected to be sold for about £140 million.