Workspace Group PLC (LON: WKP) has today announced the exchange of contracts for the disposal of Vestry Street Studios, Shoreditch and Alexandra House, Wood Green, for a combined total of £34.75m, a premium of 20% to the 31 March 2019 valuations.
Vestry Street Studios, near Old Street, is a small office building in a converted Victorian warehouse comprising 23,000 sq. ft. of net lettable space, which has been sold for £19.25m. This disposal is at a premium of 8% to the 31 March 2019 valuation, a net initial yield of 4.3% and a capital value of £847 per sq. ft.
Alexandra House, a 55,000 sq. ft. office building in Wood Green, is let entirely to the London Borough of Haringey until February 2021 and has been sold for £15.5m. This represents a premium of 38% to the 31 March 2019 valuation, a net initial yield of 4.1% and a capital value of £283 per sq. ft. The premium achieved is well ahead of the returns we expected to achieve from the planned repositioning of this building in 2021.
Graham Clemett, Interim Chief Executive Officer of Workspace Group, commented:
“We are delighted to have exchanged contracts to sell these two properties at a premium to their current valuations, highlighting the underlying value of our London property portfolio. The proceeds will be recycled into acquisitions and our refurbishment programme to deliver superior value for shareholders.”