Workspace bets on office and retail demand as housing arm of Wandsworth redevelopment sells ahead of new business center
- Workspace said the office building will contain 153,000 square feet of rental space
- Riverside development aims to attract small and medium sized businesses
Property group Workspace has sold the residential segment of the mixed-use Riverside project in London’s Wandsworth borough for £54million.
Just under £44m will be immediately received by the property developer as part of the deal, with a further £10m to be paid in March next year.
The FTSE 250 company left the Riverside homes in December ahead of a major redevelopment, which will see the construction of a large new business center called Riverside Factory.
Scheme: Workspace has sold the housing arm of the mixed-use redevelopment of Riverside in Wandsworth, London, for £54million (Picture: CGI representation of Riverside)
Workspace said the building will contain 153,000 square feet of rental space, including five floors of workshop and commercial space, while the ground floor will house a light industrial unit.
Like the overwhelming majority of holdings in the company’s 60 London locations, the South West London development is intended to attract small and medium-sized businesses.
He also said the building would have an energy performance certificate rating of A, the highest possible rating an office or home could have, as well as heat pumps, smart meters and storage facilities of bicycles.
From early April, commercial landlords will not be allowed to rent or renew a tenancy on a property with a minimum EPC rating of “E”. This rule will be tightened in 2030 when buildings will need at least a “B” rating.
Workspace originally obtained planning permission to build the center, along with more than 400 homes, in December 2020, at the height of the Covid-19 pandemic.
Last September an amendment increased the number of homes to 433. At this stage, however, the group intended to sell the residential slice of Riverside.
Scheduled to be completed in six phases, the project will include 30% affordable houses and apartments with between one and four bedrooms.
Managing Director Graham Clemmett said: “We look forward to adding a major new business center to our portfolio, which will be adjacent to the residential development, with excellent access from Garratt Lane and just a five minute walk from the train station. of Earlsfield.
“By repositioning outdated sites into attractive and sustainable mixed-use spaces, we can extend our strong footprint of high-quality workspaces across London and implement our job-focused regeneration strategy in areas where we operate.”
Workspace shares were down 2.9% at 460.2p on Friday afternoon and have fallen around 22% over the past 12 months amid growing economic uncertainty.
Commercial property values are expected to fall this year due to rising interest rates and the trend towards working from home, making businesses more reluctant to lease additional office space.