Workspace Group has bought Salisbury House at 28-31 Finsbury Circus, EC2, for £158.7m.
The 240,000 sq ft multi-let property is 90% occupied, with a net initial yield of 5%, and has an average passing rent of £41.50 a sq ft. Net rental income was £8.1m over the past 12 months.
Workspace said the deal will be funded from its existing resources, including an additional £100m of five-year revolving facilities provided by its bank lending syndicate under the existing overarching agreement.
The deal, coupled with the acquisition of Fitzroy Street in April 2017 and the disposal of Uplands Business Park in May 2017, increases the group’s loan-to-value ratio to 22% from 13%.
Chief executive Jamie Hopkins said: “The City has become an increasingly attractive area for our customers, and this well-located building is ideally suited to our operational model. The transaction emphasises our commitment to expand further through targeted acquisitions, adding to our existing pipeline of refurbishment and redevelopment projects, to deliver superior value and returns to shareholders over the long term.”
The building is held on a long leasehold from the City of London Corporation.
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