Workspace Group PLC ('Workspace') is pleased to announce that it has exchanged contracts to acquire The Shepherds Building ('the property') in Shepherd's Bush, W14, from Helical PLC for a cash consideration of £125.3m.
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 (2.6 years to break). Customers include TV producer, Endemol Shine, hotel bookings platform, Mr & Mrs Smith, and Noble Foods (GÜ 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. The transaction will be funded from existing facilities.
Commenting on the announcement, Jamie Hopkins, Chief Executive Officer, 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."