Workspace completes £98.5m Fitzroy office deal

Workspace Group has announced that it has exercised its option to acquire the freehold of 13-17 Fitzroy Street for £98.5m from Arup. It signed an option agreement for the right to acquire the freehold of the 92,700 sq ft building in February, as reported by Property Week. The building has been acquired at a capital value of £1,063/sq ft and a net initial yield of 4.6%. The transaction has been funded from existing facilities.Workspace will reposition the building as a multi-let business centre and aims to capture significant rental uplifts.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 exercised provides Arup with an early exit from its lease with a rolling nine-month break option. Strutt & Parker acted for Arup.