Workspace Group has announced the completion four acquisitions for a total of £39.7m, adding an extra 495,776 sq ft of space to its portfolio.
The acquisitions comprise:
- Uplands Business Park, Walthamstow, E17 – 287,485 sq ft of industrial property in 45 buildings. The park has an annual income is £1.711m, representing a net initial yield of 6.74% on the purchase price of £24m.
- Marshgate Business Centre, Stratford, E15 - a 93,420 sq ft a multi-let industrial estate of 22 buildings, which produces an annual rent of £354,433 pa, showing a net initial yield of 5.87% on the acquisition price of £5.59m.
- 111 Power Road, Chiswick, W4 – a 1950s factory complex of 98,110 sq ft, which is mostly vacant. Workspace plans to convert the building into a business centre providing affordable space to local small businesses. The purchase price was £7.5m.
- Evelyn Court, Deptford, SE8 – a 16,761 sq ft small unit office scheme totalling 18 self-contained offices. The property produces an annual rent of £207,810 which represents an initial yield of 7.56% on the purchase price of £2.64m.
Workspace has also completed the sale Payne Road Studios and 5 Payne Road, London E3 have been sold for £2.1m to a developer.
The site has consent for mixed residential and commercial accommodation, including a 23-storey tower.
Payne Road Studios was acquired in 1999 as part of the Tonex portfolio, whilst 5 Payne Road was acquired in 2001.
The sale price achieved was in line with book value and showed an Internal Rate of Return of 21% over the holding period.
Chief executive Harry Platt said: “We have acquired four properties at fair prices in what is proving to be a very competitive investment market.
“All the acquisitions offer exciting opportunities, with Power Road in Chiswick complementing our other ownerships in the area, and Evelyn Court, Deptford, located in an area with improving prospects.”
He added: “The Uplands acquisition is particularly timely, coming so soon after the success of the London Olympic bid.
“We hope to assist the LDA in relocating businesses to be displaced from the Lower Lee Valley. The Marshgate Lane property also gives us a role to play in this area.”
References: EGi News 26/07/05
