WORKSPACE Group has acquired Centro 1 & 2 in Camden, London for €87.3m (£76.5m). The property consists of two freehold buildings providing 85,000 ft² of warehouse-style offices, with a large communal roof terrace, impressive reception area and a new gym on the lower ground floor. It is let to five customers, at a passing rent of €61,3 (£53.7) per ft² with an average unexpired lease term of 8.7 years.
Customers include the UK headquarters of Hugo Boss and French Connection. There are 12,000 ft² of vacant space which has recently been refurbished. The property is being acquired at a capital value of €1028.4 (£901) per ft² and a net initial yield of 4.9%. The transaction will be funded from existing facilities and increases the pro forma LTV, based on the 30 September 2017 property valuation, to 26%.
This acquisition completes the company's purchase of all seven buildings that comprise the Centro estate in Camden, providing in total 216,000 ft² of net lettable space for a total purchase price, excluding costs, of €211.7m (£185.5m).
Commenting on the announcement, Jamie Hopkins, Chief Executive Officer, said: “This strategic purchase allows us to consolidate our presence in Camden. It provides an exciting and scale opportunity for our offer to this vibrant and dynamic area of London, as we continue to grow the business through selective acquisitions and delivery of our extensive refurbishment and redevelopment pipeline.”
