14th Jun 2016 06:55
LONDON (Alliance News) - Workspace Group PLC on Tuesday said the BlackRock Workspace Property Trust has sold the remaining seven properties in its portfolio for GBP118.0 million, and the joint venture will now be concluded.
BlackRock Workspace Property Trust is a joint venture between FTSE 250-listed property company Workspace and BlackRock UK Property Fund, a vehicle managed by US fund manager BlackRock Inc. Workspace has a 20% interest in the joint venture.
The seven properties sold, all in London, were Baden Place in London Bridge, Burford Road Business Centre in Stratford, City Road near Old Street; Europa Studios in Acton, Little London in Bermondsey, 6 Lloyds Avenue near Aldgate, and Union Court in Clapham.
Workspace said the properties were sold for GBP118.0 million, at a net initial yield of 4.7%.
Together with a previous sale of Chandelier Build, Old Oak Common for GBP13.0 million, this completes the sale of all eight properties held by the joint venture for a total of GBP131.0 million, in line with the valuation at March 31, Workspace said.
After completion of the disposals, a performance fee will be payable to Workspace by BlackRock Workspace based on returns achieved over the five years of the joint venture, the company said. This is estimated to be around GBP24.0 million, Workspace said.
"These disposals mark the conclusion of our hugely successful joint venture with BlackRock. We look forward to redeploying the capital we will receive as a result into our programme of refurbishments and acquisitions," said Workspace Chief Executive Jamie Hopkins.
By Hannah Boland; [email protected]; @Hannaheboland
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