26th Jul 2005 12:01
Workspace Group PLC26 July 2005 WORKSPACE ADDS 500,000 SQ. FT Workspace Group PLC, ("Workspace"), the leading provider of flexible businessaccommodation to small and medium sized enterprises (SME's) in London and theSouth East, continues to expand its property portfolio. It has announced that ithas recently completed four separate acquisitions for an aggregate cashconsideration of £39.7 million. Workspace has also completed the disposal of a site in Payne Road, E3 forredevelopment. Acquisitions Workspace has made four separate acquisitions since 31 March 2005 adding afurther 495,776 sq ft of space to its portfolio. The acquisitions comprise: Uplands Business Park, Walthamstow, London E17 - 287,485 sq ft of predominatelyindustrial accommodation in 45 units off Blackhorse Lane, London E17. The annualincome is £1.711m, which represents a net initial yield of 6.74% on the purchaseprice of £24.0m. Marshgate Business Centre, London E15 is a multi-let industrial estate of 93,420sq ft in 22 units, which is fully let and producing an annual rent of £354,433p.a., showing a net initial yield of 5.87% on the acquisition price of £5.59m.There is substantial reversionary potential, which is expected to lift the yieldto over 7% in 2006. 111 Power Road, Chiswick, London W4 is a 1950s factory complex of 98,110 sq ftin a good location close to the A4 and A406 Chiswick roundabout. The building ismostly vacant, and Workspace plans to convert the building into a businesscentre providing affordable space to local small businesses. The purchase pricewas £7.5m. Evelyn Court, Deptford, London SE8 is a modern, small unit office schemetotalling 16,761 sq ft in 18 self-contained office units. The property producesan annual rent of £207,810 which represents an initial yield of 7.56% on thepurchase price of £2.64m. Disposals Payne Road Studios and 5 Payne Road, London E3 have been sold for £2.1m to adeveloper. The site has consent for mixed residential and commercialaccommodation, including a 23 storey tower. Payne Road Studios was acquired in1999 as part of the Tonex portfolio, whilst 5 Payne Road was acquiredsubsequently in 2001. The sale price achieved was in line with book value andshowed an Internal Rate of Return (IRR) of 21% over the holding period. Harry Platt, Workspace Chief Executive, commented, " We have acquired four properties at fair prices in what is proving to be avery competitive investment market. All the acquisitions offer excitingopportunities, with Power Road in Chiswick complementing our other ownerships inthe area, and Evelyn Court, Deptford, located in an area with improvingprospects. The Uplands acquisition is particularly timely, coming so soon afterthe success of the London Olympic bid. We hope to assist the LDA in relocatingbusinesses to be displaced from the Lower Lee Valley. The Marshgate Laneproperty also gives us a role to play in this area. " The sale of the Payne Road properties for redevelopment demonstrates onceagain the potential for high-value uses within our portfolio, and we expect thepotential for this to increase over time." -ends- Date: 26 July 2005 For further information: Workspace Group PLC City ProfileHarry Platt, Chief Executive Simon CourtenayMark Taylor, Finance Director Oliver Winters020-7247-7614 020-7448-3244 web: www.workspacegroup.co.uk------------------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Workspace