Energis HQ sold off for £20m

THE London headquarters of troubled telecoms group Energis has been sold to property developer Chelsfield for £20m.

The Energis offices are close to the Bankside area on the south side of the Thames. The sale includes 1.2 acres of land.

But Energis staff will not move out. The vendor, National Grid, had leased the building to Energis, in which it has a seven% stake, until 2008.

However, the future of Energis, which came close to collapse this year when it lost 70% of its share value in one day, remains uncertain. And Chelsfield is believed to have deferred paying a substantial part of the price until the position of Energis, headed by David Wickham, becomes clearer. Chelsfield investment director David Phillips told Estates Gazette: 'If Energis survives, we have a tenant for another six years. If it does not, we are adequately compensated.

'At the very least, this presents a medium-term opportunity for another major new construction project. It is very hard to find investment opportunities in the Bankside area any more.'

The deal consolidates Chelsfield's position as one of the biggest landowners in Bankside along with Land Securities.

The Energis site is already being lined up for 400,000 sq ft of offices and a retail scheme. Mark Shipman of Chelsfield's agent, Michael Elliott, said: 'The south bank of the Thames is undergoing a regeneration that will lead to a momentous increase in the value of property there.'