Workspace sells Fitzroy office for £92m

Workspace has sold 13-17 Fitzroy Street, W1, for £92m – less than it paid for it in 2017. EG revealed last week that DWS Group was close to buying the freehold from the operator. The 92,700 sq ft property was let to Arup until June, but has been vacant since. It has now been sold at a 3.2% discount to the 31 March 2021 valuation. Workspace bought the building in 2017 for £98.5m in a sale and leaseback deal with Arup. The deal was worth £4.9m in rent each year, but Arup moved out in June 2021. Arup had bought the building in 2009 from Derwent London for £60m. Workspace CEO Graham Clemett said: “Fitzroy Street has been a useful and secure source of income over the past four years. With Arup vacating as expected in June this year, now is the right time to sell this asset and recycle the capital into the other exciting project and acquisition opportunities we have ahead of us, which we believe will generate superior value for shareholders.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNewsgreat