Disposal

RNS Number : 7222O

Workspace Group PLC

11 February 2016

 

11 February 2016

WORKSPACE GROUP PLC

WORKSPACE ANNOUNCES DISPOSAL OF INDUSTRIAL PORTFOLIO

Workspace Group PLC (Workspace), home to new and growing companies across London, is pleased to announce the exchange of contracts for the disposal of five light industrial buildings for £64m.

The industrial estates - Acton, NW10, Atlas, NW2, Bounds Green, N11, Fairways, E10, and Hamilton Road, SE27 - total 396,000 sq. ft. of net lettable space with an average rent per sq. ft. of £9.07. The portfolio was sold at a premium of 12% to the September 2015 valuation and at a net initial yield of 5.4% and a capital value of £171 per sq. ft.

Following this transaction, Workspace's proforma loan to value based on the net debt on 10 February 2016 and the property valuation at 30 September 2015, adjusted for subsequent  capital expenditure and disposals, is reduced to 17.4% (30 September 2015: 20%) with cash and undrawn facilities of £131m.

Jamie Hopkins, Chief Executive Officer of Workspace, commented:

"We are delighted to have exchanged contracts to sell this portfolio at a significant premium to book value. As we continue to see strong demand from new and growing companies for our high quality space, this disposal reinforces our strategy of recycling capital into acquiring and refurbishing business centres to meet that demand, adding value for both our customers and shareholders."

ENDS

For media and investor enquiries, please contact:

Workspace Group PLC                                                                      020 7138 3300

Clare Dundas, Head of Corporate Communications      

Bell Pottinger                                                                                       020 3772 2562

Victoria Geoghegan

Nick Lambert

Elizabeth Snow

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 

 

END

 

 

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