North American asset manager Blackrock and UK REIT Workspace Group are exiting their London joint venture after exchanging contacts for the salke of seven properties for 拢118 mln (鈧�148 mln).
The investment volume for the sale of the last assets owned by the BlackRock Workspace Property Trust (BWPT) reflects a a net initial yield of 4.7%.
Workspace, which focuses on providing acommodation for new and growing companies across London, held a 20% stake in the joint venture.
The vendors did not disclose the name of the buyer but market sources have suggested it was Westbrook Partners, a New York-based real estate firm that previously acquired properties from BWPT.
The seven properties sold were Baden Place in London Bridge, Burford Road Business Centre in Stratford; City Road near Old Street; Europa Studios in Acton; Little London in
Bermondsey; 6 Lloyds Avenue near Aldgate and Union Court in Clapham.
Together with the previous sale of Chandelier Building, Old Oak Common, for 拢13 mln, this completes the sale of all eight properties held by BWPT at end-March this year. The combined sale price of 拢131 mln was in line with the valuation in march, Workspace said.
Following completion of these disposals, a performance fee will be payable by BWPT to Workspace based on the returns achieved over the five years of the joint venture. This fee is estimated to be 拢24 mln.
Jamie Hopkins, CEO of Workspace, said: 'These disposals mark the conclusion of our hugely successful joint venture with Blackrock. We look forward to redeploying the capital we will receive as a result into our programme of refurbishments and acquisitions.'
Paul Tebbit, managing director at BlackRock added that the joint venture had achieved fantastic returns. 'Our relationship with Workspace throughout the last 5 years has been excellent. We have for some time been focusing efforts on the industrial sector and may also consider new sectors for future investment with the proceeds of the disposal.'
