Flexible office operator Workspace Group has bought a new site in Islington as it posted a set of results that its chief executive said “disproves” those who predict the end of the ofifce.
The company has acquired The Busworks, N7, just north of King’s Cross, for £45m in an off-market deal. The former Victorian bus factory is currently run as a multi-let business centre and is 65% let, with 104,000 sq ft of office space. Workspace plans to upgrade and reposition the building.
The deal represents a net income yield of 3.4% and a capital value of £431 per sq ft.
Workspace announced the transaction alongside results that chief executive Graham Clemett said showed a “strong recovery” over the half-year to 30 September.
The company was back in the black with a pretax profit of £3.4m after posting a £110.4m loss a year ago, with net tangible assets down 1.1% at £9.28 per share. It has reinstated its dividend at 7p per share.
It said enquiries, viewings and lettings were now back to pre-Covid levels, with like-for-like occupancy up 3.7% to 85.6% and rent per sq ft stabilising in the second quarter, up 0.3% to £35.50.
“Those who predicted that the pandemic would lead to the end of the office are being quickly disproven,” said Clemett. “Our performance highlights that with the right space in the right locations and a flexible, customer-centric offering, businesses still believe they do their best work together.”
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