Energis, a stakeholder in the project, will expand into the £150 million ($213 million) venture, making it one of Reading's major employers. Laing Property has negotiated flexible lease terms until 2013 and Energis options to pre-let part or all of the space.

Chris Bond, development director of Laing Property, said: 'We have worked closely with Energis over the last nine months to create a superb development opportunity in what was formerly better known by locals as the "Metal Box," while allowing them to stay and expand in Reading. The partnership with Energis reflects our focus on delivering flexible office accommodation and our long-term confidence in the Thames Valley market.'

The redevelopment will be carried out in three phases to allow for the demolition of the current main building with the joint venture aiming to begin work by early 2002. Bond says, 'In working up our plans we have been mindful of the Government's objectives of seeing sustainable development in town centre locations next to public transport hubs.'

Laing's joint venture with Bank of Scotland was formed two years ago to expand Thames Valley office accommodation outside the M25. It recently completed the successful purchase of Toshiba House in Frimley, Surrey and it has secured planning consent for a 50,000 sf office building in Station Road, Reading. The portfolio has a potential end value of £250 million ($355 million).