Workspace Group has announced that it has bought Edinburgh House, SE11 for £25.3m and Peer House, WC1 for £6.1m.
Edinburgh House is a prominent building in Kennington, close to Oval and Kennington Underground stations, the Vauxhall transport hub on London’s South Bank and Workspace’s existing cluster of properties in this area. Originally constructed in the 1970’s and fully refurbished in 2004, the office building is held on a long leasehold (76 years unexpired) from the Duchy of Cornwall. The building extends over basement, ground and four upper floors, has a net internal area of 68,300 sq.ft. and is let in its entirety to the Metropolitan Police Authority until 2030, at a rent of £22 per sq.ft. There is a tenant break in 2020, and a rent review due in 2015, with discussions over the tenant’s future occupational plans ongoing. The property is being acquired at a net initial yield of 5.2% and at a capital value of £370 per sq.ft.
Peer House adjoins Workspace’s existing property at 60 Gray’s Inn Road, WC1. It is a 10,080 sq.ft. office building arranged over basement, ground and four upper floors and is currently fully let to five tenants off low rents of £21 per sq.ft. with an average unexpired lease term of 2.7 years. The property is being acquired at a net initial yield of 3.3% and at a capital value of £605 per sq.ft.
WKP : Workspace adds two more London offices