Workspace buys Shepherds Bush property for £125m
Workspace has exchanged contracts to buy The Shepherds Building in W14 from Helical for £125.3m in cash, in a deal that will be funded from existing facilities.
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16:14 25/04/24
The freehold property consists of 150,000 sq. ft. of offices, currently let to 32 customers, at a passing rent of £45.60 per sq. ft. with an average unexpired lease term of six years. Customers include TV producer Endemol Shine, hotel bookings platform, Mr & Mrs Smith, and Noble Foods.
The property is being acquired at a capital value of £835 per sq. ft. and a net initial yield of 4.8%, rising to 5.1% on the expiry of rent frees.
Chief executive officer Jamie Hopkins said: "This acquisition represents a great opportunity to invest the capital from our equity placing in June. The Shepherds Building is in an exciting and strategic location for Workspace. It is already home to a range of interesting customers and is ideally suited to our business centre model, providing scale, efficient floorplates and natural light throughout. We look forward to adding the property to our operational platform and driving returns over the long-term."
At 1515 BST, the shares were down 0.6% to 1,041p.