This press release relates to the disclosure of information that qualified, or may have qualified, as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
23 June 2017
WORKSPACE GROUP PLC
ACQUISITION OF SALISBURY HOUSE, FINSBURY CIRCUS
Workspace Group PLC ('Workspace') is pleased to announce that it has acquired Salisbury House at 28-31 Finsbury Circus, London EC2, for a cash consideration of £158.7m. The building is held on a long leasehold from the City of London Corporation.
The Grade-II listed building is well located in the heart of the City of London, just minutes from the new Crossrail station at Moorgate and a short walk from both Liverpool Street and Bank stations. The building has a distinctive Edwardian façade and four entrances providing direct access to both Finsbury Circus and London Wall.
The multi-let property provides 240,000 sq. ft. of net lettable space and is currently 90% occupied with 105 customers. It is being acquired at a capital value of £661.1 per sq. ft., a low average passing rent of £41.50 per sq. ft at a net initial yield of 5.0%.
The property has a gross asset value of £158.7m and generated net rental income of £8.1m over the last 12 months.
The transaction will be funded from Workspace's existing resources, including an additional £100m of five-year revolver facilities provided by its bank lending syndicate under the existing overarching agreement. The syndicate has also provided a further £50m 364-day revolver facility for working capital purposes.
On a pro forma basis, this transaction (together with the acquisition of Fitzroy Street in April 2017 and the disposal of Uplands Business Park in May 2017, and excluding costs) increases the LTV of 13% reported at 31 March 2017 to 22%.
Commenting on the announcement, Jamie Hopkins, Chief Executive Officer, said:
"This is a property we have tracked for some time and we are delighted to add it to our portfolio. 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."
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For media and investor enquiries, please contact:
Workspace Group PLC
Duncan Pelham 077 4040 7068
Rob Yates 020 3047 2546
Notes to Editors
About Workspace Group PLC:
Workspace is geared towards helping businesses perform at their very best. The Workspace Advantage is our unique customer offer and is open to all - we provide inspiring, flexible work spaces with super-fast technology in dynamic London locations. Established in 1987, and listed on the London Stock Exchange since 1993, Workspace owns and manages more than 3.5 million sq. ft. of business space across 68 London properties. We are home to some 4,000 businesses including some of the fastest growing and established brands across a wide range of sectors.
The way businesses work is changing. That's why we continually invest in providing the technology infrastructure that enables our customers to think and move fast, and alongside their working environment, is tailored to each individual business.
Workspace (WKP) is a FTSE 250 listed Real Estate Investment Trust and a member of the European Public Real Estate Association.
For more information on Workspace, please visit www.workspace.co.uk
This information is provided by RNS