Acquisitions

RNS Number : 1862D

Workspace Group PLC

23 October 2015

 

23 October 2015

WORKSPACE GROUP PLC

WORKSPACE MAKES ACQUISITIONS IN WOOD GREEN AND SURREY QUAYS

Workspace Group PLC ("Workspace"), home to new and growing companies across London, is pleased to announce the exchange of contracts for two separate acquisitions for a total of £24.4m.

The first is for the acquisition of Alexandra House in Wood Green, N22, for £14.0m. Alexandra House is a 55,000 sq. ft. office building, currently let entirely to the London Borough of Haringey at a low passing rent of £10 per sq. ft., reflecting a capital value of £255 per sq. ft. and a Net Initial Yield of 3.7%. A rent review is due in February 2016 and the lease expires in 2021. The property is built over eleven floors with excellent natural light and easily divisible floor plates.

Alexandra House is close to Workspace's existing cluster of four properties in the area, including The Chocolate Factory. It is located opposite Wood Green tube station (Zone 3), which is 14 minutes to Kings Cross St Pancras via the Piccadilly Line. The proposed route for Crossrail 2 includes stops at Alexandra Palace and Turnpike Lane stations nearby, which would further improve Wood Green's accessibility to Central London.

Workspace has also exchanged contracts for the acquisition of Cannon Wharf, a brand new business centre in Surrey Quays, SE8, for £10.4m, reflecting a capital value of £310 per sq. ft. The newly built 33,500 sq. ft. centre forms part of the Greenland Place development by Barratt Homes and its design is well suited to Workspace customers.

The business centre is located close to Surrey Quays station on the London Overground, which is 11 minutes to Shoreditch High Street, and a short walk from Canada Water tube station on the Jubilee Line. Surrey Quays is currently undergoing significant regeneration, which will substantially increase both the employment and residential density of the area. The property is close to existing Workspace sites at The Biscuit Factory, SE16, and The Faircharm, SE8.

Jamie Hopkins, Chief Executive Officer of Workspace, commented:

"We are delighted to announce these two acquisitions, which are both in very exciting areas of London with excellent regeneration and growth opportunities. Both Wood Green and Surrey Quays are areas we know well and in which we are seeing high demand from new and growing companies.

The purchase of these two properties demonstrates our ongoing commitment to investing in targeted acquisitions where we can add value to our portfolio and drive returns for shareholders."

ENDS

For media and investor enquiries, please contact:

Workspace Group PLC Clare Dundas, Head of Corporate Communications	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 property company and has been listed on the London Stock Exchange since 1993
·	Workspace owns over 80 properties across London and is home to some 4,000 new and growing companies
·	Workspace provides the right properties in the right locations to attract its customers and the right services to retain them and help them grow
·	Workspace is growing through deep market knowledge, operational excellence and strong customer relationships
·	For more information on Workspace, please visit www.workspace.co.uk

 

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