Workspace Group has exchanged contracts with Threadneedle to acquire five warehouse-style office buildings in Camden, NW1, known as the Centro Buildings, for £109m.
The purchase of Centro Blocks 3, 4 and 5, as well as Atelier House and Selous House provides the flexible workspace provider with 131,000 sq ft of net lettable space.
The property is currently occupied by 16 customers, with a passing average rent of £44.70 per sq ft, with 21,000 sq ft currently vacant and undergoing refurbishment.
The price paid for the property reflects a capital value of £831 per sq ft and a net initial yield of 4.2%. The transaction will be funded from existing facilities.
Chief executive Jamie Hopkins said: “It is an exciting, dynamic area that Workspace has watched for some time and the Centro Buildings are ideally suited to our model, providing scale, unique design features and efficient floor plates.
“With the structural shift in the market continuing to move towards a customer-first and flexible approach, I believe Workspace is well positioned.
“We look forward to continuing to grow the business through selective acquisitions combined with our extensive pipeline of refurbishment and redevelopment projects.”
To send feedback, e-mail Louisa.Clarence-Smith@egi.co.uk or tweet @LouisaClarence or @estatesgazette
