19th Aug 2005 11:46
Workspace Group PLC19 August 2005 WORKSPACE'S EXPANSION CONTINUES WITH £56 MILLION ACQUISITION Workspace Group PLC ("Workspace") the leading provider of flexible businessaccommodation to small and medium sized enterprises (SMEs) in London and theSouth East, has exchanged contracts to acquire Kennington Park, Oval, SW9 fromBrixton plc for a cash consideration of £56 million. Kennington Park is a large 6.2 acre business centre complex located in SouthLondon on an island site adjacent to the Brixton Road (A23), close to the Ovaltube station. The estate comprises 11 buildings set around a central courtyardwith ample car parking and totals 333,130 sq ft of commercial space, includingstudios, offices, light industrial and warehousing units ranging in size from300 to 30,000 sq ft. The property is currently 86% let on a mixture of leases and licences, producing£3.623 million, representing a net initial yield of 6.17% on total acquisitioncost. Harry Platt, Chief Executive, commented, " We are delighted to agree this acquisition. We have been tracking KenningtonPark for many years. The estate is a local landmark and adds to the range ofaccommodation we are able to offer in South London. We believe the property hasconsiderable scope for improvement and value creation through application of ourbusiness model, providing attractive space to local small businesses on flexibleterms. " Following this deal we will have added 829,000 sq ft to the portfolio sincethe start of the new financial year in April, at a combined cost of £96m. Theseacquisitions are earnings neutral in the current year but will add significantlygoing forward. We continue to monitor closely potential acquisitions in GreaterLondon, where we can add value. We will also make disposals where we haveoptimised returns, particularly for properties outside our core area of GreaterLondon." -ends-Date: 19 August 2005For further information: Workspace Group PLC City ProfileHarry Platt, Chief Executive Simon CourtenayMark Taylor, Finance Director Oliver Winters020-7247-7614 020-7448-3244 e-mail: [email protected]: www.workspacegroup.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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