Workspace buys London office building for £98.5m

Investor Workspace Group has bought an office building in Fitzrovia, London for £98.5m from Arup Group, the design and engineering firm.

The FTSE 250 company bought 13-17 Fitzroy Street at £1,063 per square foot and a net yield of 4.6%.

Arup had occupied the building paying annual rent of £4.9m with a lease until 2022 and are relocating as rent was expected to rise to £6m per year in March 2021.

The deal provides Arup with an early exit from its lease with a rolling nine-month break option.

Chief executive Jamie Hopkins said in February, when the company announced the acquisition that the deal emphasised its “commitment to expand further through targeted acquisitions, adding to our existing pipeline of refurbishment and redevelopment projects, to deliver superior value and returns to shareholders over the long-term”.