UK business space specialist Workspace Group has exchanged contracts to acquire five of the Centro Buildings in the Camden district of London. The investment volume of £109 mln (€124 mln) reflects a net initial yield of 4.2%.
The property comprises of five multi-let freehold buildings, and is located close to Camden High Street. A former furniture depository, the buildings have been converted to provide office accommodation.
The acquisition will include Centro Blocks 3, 4 and 5, as well as Atelier House and Selous House. It provides 131,000 sq ft (12,200 m2) of net lettable space and the property is currently occupied by 16 customers, with a passing average rent of £44.70 per sq ft, with 21,000 sq ft currently vacant and undergoing refurbishment.
The transaction will be funded from existing facilities.
On a pro forma basis, this transaction increases the UK REIT's loan to value of 19% reported as at 31 December 2017 to 23%.
Commenting on the announcement, CEO Jamie Hopkins said: 'We are delighted to have acquired this property in Camden. It is an exciting, dynamic area that Workspace has watched for some time and the Centro Buildings are ideally suited to our model, providing scale, unique design features and efficient floor plates'
He added: 'We look forward to continuing to grow the business through selective acquisitions combined with our extensive pipeline of refurbishment and redevelopment projects.'