Our News

Workspace buys Shepherds Building for £125m

Helical has exchanged contracts on the sale of The Shepherds Building in West London to Workspace Group for £125.3m, reflecting a capital value of £835 per sq ft and a net initial yield of 4.8%, rising to 5.1% on expiry of rent frees.

The sale, which represents a 12.4% premium to 31 March 2018 book value, will allow Helical to recycle capital into new value-add and development opportunities. Helical will now focus on design led office and mixed-use schemes in London and Manchester.

The Shepherds Building is a former Inland Revenue tax office on Rockley Road, W14, and was acquired by Helical for £12.8m in 2000. The purchase was followed by a full refurbishment of the property and the addition of an extra floor.

A further overhaul of the common parts was undertaken and a new entrance area was built in 2014. The 150,000 sq ft building has eight floors and is 99% let to 32 different occupiers with an average contracted rent of £45.60 per sq ft. The disposal is expected to complete next month.

Gerald Kaye, Chief Executive of Helical, said: “We have enjoyed 18 strong years of ownership at The Shepherds Building. We took the decision to dispose of the asset as it will allow us to recycle our equity into new projects to create future profits.”

Jamie Hopkins, Chief Executive Officer of Workspace, said: “This acquisition represents a great opportunity to invest the capital from our equity placing in June. 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.”

Michael Elliott acted for Workspace; Cyril Leonard and Tudor Toone advised Helical.

Article Details

Date:
Author: digital.support
Categories:
Capital & Occupational Markets

Our News

View all

ABTA, Newman Street – Sale

Cyril Leonard was pleased to advise ABTA, the association of travel agents and tour operators,...
Cyril Leonard - Our People

New management team takes helm at Cyril Leonard

Independent property consultancy, Cyril Leonard, has announced changes to its board and a new leadership....