21st Jan 2015 07:47
LONDON (Alliance News) - Workspace Group PLC Wednesday said it had bought two London properties for a combined GBP31.4 million, boosting its presence in two areas of the capital going through extensive regeneration.
In a statement, the workspace lettings business said it has bought Edinburgh House in Kennington for GBP25.3 million. Originally constructed in the 1970's and fully refurbished in 2004, the office building is held on a long leasehold of 76 years from the Duchy of Cornwall.
It is let in its entirety to the Metropolitan Police Authority until 2030, at a rent of GBP22 per square foot. There is a tenant break in 2020, and a rent review due in 2015, with discussions over the tenant's future occupational plans ongoing.
The property is being acquired at a net initial yield of 5.2% and at a capital value of GBP370 per square foot, Workspace said.
It has also bought Peer House in what is now being called the Midtown area of central London for GBP6.1 million. Peer House adjoins Workspace's existing property at 60 Gray's Inn Road, and is a 10,080 square foot office building currently fully let to five tenants off low rents of GBP21 per square foot with an average unexpired lease term of 2.7 years.
The property is being acquired at a net initial yield of 3.3% and at a capital value of GBP605 per square foot.
"I am delighted to announce these two purchases which extend our already strong presence on London's South Bank and in Midtown. Both are located in exciting areas very well known to us, which are undergoing substantial change and regeneration, and where we are seeing strong customer demand," Chief Executive Jamie Hopkins said in a statement.
"These are the first acquisitions since our successful equity placing in November 2014 and demonstrate our ability to invest in quality, earnings enhancing assets to generate value for our shareholders," he added.
By Steve McGrath; [email protected]; @stevemcgrath1
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