Workspace agrees sale of five light industrial buildings for £64m

Real estate investment trust Workspace announced the disposal of five light industrial buildings for £64m.

The industrial estates total 396,000 sq ft of net lettable space, with an average rent per square foot of £9.07.

Workspace said the portfolio was sold at a 12% premium to the September 2015 valuation, a net initial yield of 5.4% and a capital value of £171 per sq ft.

Chief executive officer Jamie Hopkins said: “As we continue to see strong demand from new and growing companies for our high quality space, this disposal reinforces our strategy of recycling capital into acquiring and refurbishing business centres to meet that demand, adding value for both our customers and shareholders.”

Following the deal, Workspace's proforma loan to value based on the net debt on 10 February 2016 and the property valuation at 30 September 2015, adjusted for subsequent capital expenditure and disposals, is reduced to 17.4% from 20%, with cash and undrawn facilities of £131m.

At 0832 GMT, Workspace shares were flat at 717.75p