Camden headquarters of Hugo Boss and French Connection bought for £76.5m

WORKSPACE Group plc has announced that, subsequent to the acquisition of five Centro buildings in January 2018, it has now acquired the property, Centro 1 and 2 for a cash consideration of £76.5m.

The property consists of two freehold buildings providing 85,000 sq ft of warehouse-style offices, with a communal roof terrace, reception area and a new gym on the lower ground floor.

It is let to five customers, at a passing rent of £53.70 per sq ft with an average unexpired lease term of just over eight years.

Customers include the UK headquarters of Hugo Boss and French Connection. There is 12,000 sq ft of vacant space which has recently been refurbished too.

Jamie Hopkins, chief executive officer, said: “This strategic purchase allows us to consolidate our presence in Camden.

“It provides an exciting and scale opportunity for our offer to this vibrant and dynamic area of London, as we continue to grow the business through selective acquisitions and delivery of our extensive refurbishment and redevelopment pipeline.”

The property is being acquired at a capital value of £901 per sq ft and a net initial yield of 4.9 per cent. The transaction will be funded from existing facilities and increases the pro forma LTV, based on the September 30, 2017 property valuation, to 26 per cent.

This acquisition completes WORKSPACE’s purchase of all seven buildings that comprise the Centro estate in Camden, providing in total 216,000 sq ft of net lettable space for a total purchase price of £185.5m.

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