13th Sep 2018 12:53
LONDON (Alliance News) - FTSE 250-listed Workspace Group PLC said on Thursday it has acquired The Shepherds Building in west London from property developer Helical PLC for GBP125.3 million.
The freehold property consists of 150,000 square feet of offices, currently let to 32 customers at a passing rent of GBP45.60 per square feet with an average unexpired lease term of six years.
The acquisition is expected to be completed next month, and Workspace is funded the deal through existing facilities.
For Helical, the disposal allows the company to recycle capital to new development opportunities.
"This acquisition represents a great opportunity to invest the capital from our equity placing in June. The Shepherds Building is in an exciting and strategic location for Workspace. It is already home to a range of interesting customers and is ideally suited to our business centre model, providing scale, efficient floorplates and natural light throughout," said Workspace Chief Executive Officer Jamie Hopkins.
Helical Chief Executive Gerald Kaye commented: "We have enjoyed 18 strong years of ownership at The Shepherds Building. We took the decision to dispose of the asset as it will allow us to recycle our equity into new projects to create future profits."
Shares in Workspace Group were down 0.5% at 1,042.00 pence, while Helical shares were flat at 339.00p on Thursday.
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