Workspace offloads Raynes Park industrial site for £20m

London-focused office owner and operator Workspace Group has disposed of another non-core asset with the sale of Raynes Park redevelopment site, the Rainbow Industrial Estate.

The company said it has exchanged on the sale of the mixed-use redevelopment, which comprises 224 residential units and 37,000 square feet of new light industrial space.

The site was sold for £20.3m, £1.0m below the March 2024 valuation at a net initial yield of 3.5%.

"The sale of this redevelopment site in Raynes Park continues our disposal of non-core assets, recycling capital into our core portfolio where we see significant opportunity to generate strong returns from upgrading space and delivering on our major refurbishment projects," said chief executive Graham Clemett.

Workspace reported last month that it had sold £29.9m of non-core assets in the first half ended 30 September, with a further £26.9m exchanged and expected to complete in the second half of the year.