Development Securities has completed the acquisition of a portfolio of five office properties for £17.5 million (approx. €21.3 million) as referenced in its most recent interim management statement. The acquisition was partly financed by a new three-year facility from Barclays.
The portfolio comprises five office properties in underground zones 1 and 2 of North London, including locations in King's Cross, Camden and Highbury and Islington. Comprising a total of 66,800 sq. ft. of office accommodation, the combined income from the properties is £676,000 per year representing a 3.65% yield, with vacancy rates at 35%.
The five properties offer opportunities to improve income in the short-term whilst exploring options for redevelopment or refurbishment over the medium-term with several of the properties presenting strong options for mixed-use, residential-led development. All of the properties are well-maintained, well-located and within easy access to major transport links.
Matthew Weiner, Development Securities said: "The acquisition announced today is a strong addition to our development and trading portfolio and supports our activities in fringe Central London locations which offer growth potential and benefit from good transport links. The portfolio presents a number of opportunities to create value, with options for asset enhancement or change of use in the medium-term whilst improving income in the near-term."
Source: Development Securities