Workspace sells condominium portion of Riverside redevelopment

Property group Workspace has sold the residential segment of its mixed-use Riverside development in London’s Wandsworth for £54m.

The property developer will receive almost £44m as part of the deal immediately, with a further £10m to be paid out in March next year.

The FTSE 250 company in December vacated its homes at the Riverside site ahead of a major redevelopment that will see the construction of a major new business center called the Riverside Factory.

Scheme: Workspace has sold the residential portion of the mixed-use Riverside redevelopment in Wandsworth, London for £54m (pictured: CGI rendering of Riverside)

Workspace said the building would have 153,000 square feet of rentable space, including five floors of workshop and commercial space, while the ground floor will house a small 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.

It also said the building would have an energy performance rating of A, the highest possible rating an office or home can possess, along with heat pumps, smart meters and bike parking facilities.

As of early April, commercial landlords will no longer be permitted to rent or renew a property with an EPC rating of at least “E”. This rule will be tightened in 2030 when buildings will require at least a “B” rating.

Workspace originally received planning permission from Wandsworth Borough Council to build the center and over 400 homes in December 2020 during the height of the Covid-19 pandemic.

Last September, an amendment allowed the number of apartments to be increased to 433. At the time, however, the group intended to sell the Riverside residential area.

The project, to be completed in six phases, will consist of 30 percent affordable one to four bedroom homes and apartments.

Chief Executive Graham Clemmett said: “We look forward to adding a large new business center to our portfolio which will be adjacent to the development, with excellent access from Garratt Lane and just a five minute walk from Earlsfield train station.

“By repositioning aging sites into attractive, sustainable mixed-use development, we can expand our strong presence of quality jobs across London and deliver on our strategy of employment-led renewal in the areas where we operate.”

Workspace shares were 3.7 percent lower at 456.4 pence when trading closed on Friday. They have shrunk by about 22 percent over the past 12 months amid mounting economic uncertainty.

Commercial property values ​​are expected to fall this year due to rising interest rates and the trend towards working from home, making companies less willing to rent additional office space.