Workspace Group has exchanged contracts to acquire five of the Centro Buildings in Camden, London NW1, for €124.5m (£109m).
The property, comprising five multi-let freehold buildings, is well located close to Camden High Street and within walking distance of Mornington Crescent and Camden Town Underground stations, Camden Road Overground station and King's Cross St Pancras. A former furniture depository, the buildings have been converted to provide high-quality office accommodation but retain attractive warehouse design features.
The acquisition will include Centro Blocks 3, 4 and 5, as well as Atelier House and Selous House. It provides 131,000 ft² of net lettable space and the property is currently occupied by 16 customers, with a passing average rent of €51 (£44.70) per ft², with 21,000 ft² currently vacant and undergoing refurbishment.
The property is being acquired at a capital value of €949 (£831) per ft² and a net initial yield of 4.2%. The transaction will be funded from existing facilities.
On a pro forma basis, this transaction, including stamp duty and costs, increases the LTV of 19% reported as at 31 December 2017 to 23%.
Commenting on the announcement, Jamie Hopkins, Chief Executive Officer, said: "We are delighted to have acquired this property in Camden. 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."
