Regus takes over contracts on Stonemartin buildings

Serviced office operator Stonemartin has been replaced at Manchester's Peter House by rival Regus after splitting from its landlord.

The building, which is owned by Morley and Hermes in a joint venture, has been taken over by Regus for an undisclosed sum after the limited partnership landlord terminated its contracts on four of the five buildings Stonemartin manages.

Regus has now formed a partnership with Morley and Hermes to operate Peter House and another two Stonemartin-operated buildings in Reading and Birmingham.

The limited partnership, which counts Norwich Union and Britel Fund Trustees amongst its investors, appointed DTZ to market the properties for £165m in April 2007, but a buyer failed to emerge.

While Regus has been linked to a sale of the buildings, it is reported that any deal was conditional on the termination of Stonemartin's contract.

The new partnership means Regus's total number of UK offices is now up to 128, with almost 1,000 global centres. Regus already has two operations in Manchester and is in discussions to take 12,000 sq ft at Argent's Piccadilly Place in Manchester, and recently announced plans to open at UK Land & Property and Pochin's Exchange Flags in Liverpool.