(Alliance News) - Workspace Group PLC on Friday said it agreed to sell 12, 13 and 14 Greville Street in Farringdon for a total of GBP14.8 million.
The disposal of the property is at a premium of 48% to the March 31 valuation, the real estate investment trust said, for a net initial yield of 1.3% and a capital value of GBP1,000 per square feet.
In June last year, planning consent was obtained for a refurbishment project to deliver 23,000 square feet of new and upgraded space, Workspace noted. The premium to book value achieved on the sale exceeds the return anticipated from this planned refurbishment.
"We are delighted with the premium achieved on this disposal, well ahead of the return we could have achieved from our planned redevelopment," said Chief Executive Graham Clemett.
"The proceeds will be used to fund our project pipeline and acquisitions," added Clemett.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Workspace (WKP)