Acquisitions

RNS Number : 6866C

Workspace Group PLC

21 January 2015

 

WORKSPACE GROUP PLC

ACQUISITION OF EDINBURGH HOUSE, SE11 AND PEER HOUSE, WC1

Workspace Group PLC ("Workspace"), London's leading provider of space for new and growing companies, announces the completion of its acquisition of Edinburgh House, SE11 for £25.3m and Peer House, WC1 for £6.1m.

Edinburgh House is a prominent building in Kennington, close to Oval and Kennington Underground stations, the Vauxhall transport hub on London's South Bank and Workspace's existing cluster of properties in this area. Originally constructed in the 1970's and fully refurbished in 2004, the office building is held on a long leasehold (76 years unexpired) from the Duchy of Cornwall.

The building extends over basement, ground and four upper floors, has a net internal area of 68,300 sq.ft. and is let in its entirety to the Metropolitan Police Authority until 2030, at a rent of £22 per sq.ft.  There is a tenant break in 2020, and a rent review due in 2015, with discussions over the tenant's future occupational plans ongoing. The property is being acquired at a net initial yield of 5.2% and at a capital value of £370 per sq.ft. 

Peer House adjoins Workspace's existing property at 60 Gray's Inn Road, WC1. It is a 10,080 sq.ft. office building arranged over basement, ground and four upper floors and is currently fully let to five tenants off low rents of £21 per sq.ft. with an average unexpired lease term of 2.7 years. The property is being acquired at a net initial yield of 3.3% and at a capital value of £605 per sq.ft.

Jamie Hopkins, Chief Executive Officer of Workspace commented:

"I am delighted to announce these two purchases which extend our already strong presence on London's South Bank and in Midtown. Both are located in exciting areas very well known to us, which are undergoing substantial change and regeneration, and where we are seeing strong customer demand.

"These are the first acquisitions since our successful equity placing in November 2014 and demonstrate our ability to invest in quality, earnings enhancing assets to generate value for our shareholders."

For media enquiries please contact:

Workspace Group PLC Jamie Hopkins, Chief Executive Officer Graham Clemett, Chief Financial Officer	020 7138 3300
Bell Pottinger            Victoria Geoghegan     Nick Lambert Elizabeth Snow	020 3772 2562

Notes to Editors

About Workspace Group PLC

·     Workspace is a FTSE250 Company and has been listed on the London Stock Exchange since 1993;

·     It has a strong 27 year track record in providing tailored business premises to growing companies in London;

·     For more information on Workspace, please visit www.workspace.co.uk 

 

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