Workspace buys City of London building on long lease for £159m

Workspace Group has acquired a Grade-II listed building in Finsbury Circus in the City of London for £158.7m (€181m).

Salisbury House is held on a long leasehold from the City of London Corporation.

Jamie Hopkins, chief executive of Workspace Group, said: “The City has become an increasingly attractive area for our customers, and this well-located building is ideally suited to our operational model.”

He said the company had been considering buying Salisbury House for some time.

The property has 240,000sqft of lettable space and is currently 90% occupied with 105 customers.

It is being bought at a capital value of £661 per square foot and a net initial yield of 5%.

Over the past 12 months, it generated net rental income of £8.1m, Workspace Group said.

The deal will be funded from the company’s existing resources, it said, including an additional £100m of five-year revolver facilities provided by its bank lending syndicate under the overarching agreement already in place.

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