24th Oct 2013 09:20
LONDON (Alliance News) - Workspace Group PLC Thursday said it has sold its mixed-use redevelopment nicknamed the "Biscuit Factor" in south London to property group Grosvenor Britain & Ireland in a deal worth GBP51 million.
The real estate investment trust said it will receive GBP48 million in cash payable on a phased basis as vacant possession is achieved on the seven of 11 acres of land being sold for residential redevelopment. Full vacant possession is expected to be achieved by January 2016.
A further GBP3 million in cash will be payable on completion of each stage of the redevelopment, formally called the Tower Bridge Business Complex.
As part of the deal, Grosvenor will construct for Workspace, at Grosvernor's expense, a new commercial building at an estimated cost of GBP11 million, on the land retained by Workspace. This will increase the amount of business space at the site in Bermondsey to 270,000 sq ft.
"Once completed this will be a thriving residential and business location, providing Southwark with its largest hub for small and growing businesses," said Workspace Chief Executive Jamie Hopkins in a statement.
"This partnership will deliver significant value for our shareholders and considerable benefit to the local community," he added.
The stock was trading at 477.10 pence Thurday morning, up 5.10p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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