Workspace acquires 'the Old Dairy' in Shoreditch

Workspace Group has exchanged contracts to acquire Stapleton House, also known as 'the Old Dairy', in Shoreditch, for a total of £43.38m, it announced on Monday.

The FTSE 250 company said the property provides 57,000 square feet of net lettable space adjacent to Workspace's business centre, ‘the Frames’, which opened in 2017 following a major refurbishment project.

It said the Old Dairy was currently 80% let, and was being acquired at a net initial yield of 4.9% and a capital value of £761 per square foot.

The acquisition was being funded from existing facilities.

“The acquisition of the Old Dairy further strengthens our presence and broadens our offering in Shoreditch, one of the most popular areas for our customers,” said chief executive officer Graham Clemett.

“We see a tremendous opportunity to generate long-term value by repositioning the property over time to our distinctive flexible model.

“I am confident that, together with the Frames, the Old Dairy will be a hub for Shoreditch's dynamic SME scene for years to come.”

At 0808 BST, shares in Workspace Group were up 2.19% at 885p.