The first is for the acquisition of Alexandra House in Wood Green, N22, for £14.0m. Alexandra House is a 55,000 sq. ft. office building, currently let entirely to the London Borough of Haringey at a low passing rent of £10 per sq. ft., reflecting a capital value of £255 per sq. ft. and a Net Initial Yield of 3.7%. A rent review is due in February 2016 and the lease expires in 2021. The property is built over eleven floors with excellent natural light and easily divisible floor plates.
Alexandra House is close to Workspace’s existing cluster of four properties in the area, including The Chocolate Factory. It is located opposite Wood Green tube station (Zone 3), which is 14 minutes to Kings Cross St Pancras via the Piccadilly Line. The proposed route for Crossrail 2 includes stops at Alexandra Palace and Turnpike Lane stations nearby, which would further improve Wood Green’s accessibility to Central London.
Workspace has also exchanged contracts for the acquisition of Cannon Wharf, a brand new business centre in Surrey Quays, SE8, for £10.4m, reflecting a capital value of £310 per sq. ft. The newly built 33,500 sq. ft. centre forms part of the Greenland Place development by Barratt Homes and its design is well suited to Workspace customers.
The business centre is located close to Surrey Quays station on the London Overground, which is 11 minutes to Shoreditch High Street, and a short walk from Canada Water tube station on the Jubilee Line. Surrey Quays is currently undergoing significant regeneration, which will substantially increase both the employment and residential density of the area. The property is close to existing Workspace sites at The Biscuit Factory, SE16, and The Faircharm, SE8.
Jamie Hopkins, Chief Executive Officer of Workspace, commented:
“We are delighted to announce these two acquisitions, which are both in very exciting areas of London with excellent regeneration and growth opportunities. Both Wood Green and Surrey Quays are areas we know well and in which we are seeing high demand from new and growing companies.
The purchase of these two properties demonstrates our ongoing commitment to investing in targeted acquisitions where we can add value to our portfolio and drive returns for shareholders.”