Workspace Group has recently agreed to buy The Shepherds Building from current owners Helical. The flexible office space provider has signed and exchanged contracts, agreeing to purchase the West London building for £125.3m. This means that they’ll achieve a net yield of 4.8% initially, rising to 5.1% when rent fees expire. The purchase has cost them around £835 per square foot of The Shepherds Building.
Having owned The Shepherds Building for over 18 years, Helical wanted to sell the property to release some equity to invest in other new projects they have in the pipeline.
Contracts have been exchanged and they expect completion of the sale to be next month. This will allow Helical to concentrate on other ventures in London and Manchester. They have a range of mixed-use scheme buildings that they work to concentrate their efforts on. Gerald Kaye, the Helical CEO, said they had enjoyed their ownership of The Shepherds Building, but it was time to move on and look towards their future projects.
Totalling an impressive 150,000 square foot and standing at eight storeys high, The Shepherds Building is currently operating at a 99% let rate, with 32 different companies occupying the building. It was sold to Helical in 2000 for £12.8m, and they immediately extended the building, and carried out a full redecoration and refurbishment project.
Jamie Hopkins, Workspace CEO, has talked about how this is a great opportunity for them to invest their money. They wanted this particular building as it makes a great space for flexible office working, which is what Workspace offers. They feel they will be well-placed amongst the residents of the building, and that it is the next natural step for them as part of their expansion plans. They are excited for the sale to be completed next month, and get started on increasing profits by making full use of the building.