Administrators acting for the bank have fetched a price of £29.7 million, reaching a net yield of 3.7% and a capital value of £549 per sq ft. The seven storey office block has been acquired by Workspace, bringing the occupancy level to 48%. The commercial space which Workspace will undertake was previously a serviced office and is 43% let.
The serviced-office provider is acquiring the seven-storey property with an overall occupancy of 48%. The main office space, which was previously operated as serviced offices, is 43% let. This will be the fourth purchase made by Workspace in the last year. The office provders are expanding their portfolio in order to influence business and ‘capture significant customer demand’.
The building a a total internal area space of 54,000 sq ft. It was built in the 1920’s and will also play host to Natwest banking for another 9 years. Since a 2009 refurbishment the btone building has acquired a brand new reception and break areas, a gymnasium and new meeting areas. Workspace chief executive, Jamie Hopkins, announced: “This acquisition continues the growth of our presence in midtown, a key location for our customers.”
“We are seeing significant customer demand, from our direct marketing capabilities and relationships with customers, for exactly this sort of space in this area. The size and configuration of the building is ideally suited to our operational model and future strategy.”
Hopkins indicated that more deals could be in the pipeline that will assist Workspace with maintaining “strong, long-term shareholder returns in these key areas of London”.