London-based flexible office provider Workspace Group has acquired The Shepherds Building in Shepherd’s Bush, W14, in London from Helical for £125.3 mln (€141 mln).
'This acquisition represents a great opportunity to invest the capital from our equity placing in June,' said Jamie Hopkins, Workspace's CEO.
'The Shepherds Building is in an exciting and strategic location for Workspace. It is already home to a range of interesting customers and is ideally suited to our business centre model, providing scale, efficient floorplates and natural light throughout. We look forward to adding the property to our operational platform and driving returns over the long-term.'
The property is being acquired at a capital value of £835 per ft2 and a net initial yield of 4.8%, rising to 5.1% on the expiry of rent free periods. The transaction will be funded from existing facilities.
The freehold property comprises 150,000 ft2 (14,000 m2) of offices, currently let to 32 firms, at a passing rent of £45.60 per ft2 with an average unexpired lease term of six years (2.6 years to break). Tenants include TV producer Endemol Shine, hotel bookings platform Mr & Mrs Smith, and Noble Foods.
