Acquisition

Workspace Group PLC
10 October 2000


       WORKSPACE STRENGTHENS LONDON PORTFOLIO WITH WANDSWORTH GLE DEAL


Workspace  Group  PLC,  ('Workspace'), London's leading provider  of  flexible
workspace  to  small  and  medium  sized enterprises  (SMEs)  today  announces
exchange  of  contracts  for  the  acquisition  of  The  Business  Village  in
Wandsworth, South West London for £6.94 million.  The acquisition is the first
deal to be announced following the co-operation agreement with GLE Properties,
the   specialist   property  and  regeneration  division  of  Greater   London
Enterprise. GLE is the economic regeneration business owned by all the  London
Boroughs and the City Corporation.

The Business Village comprises five buildings totalling 86,500 sq. ft of space
divided  into 190 lettable units.  The 2.06-acre site adjoins Wandsworth  High
Street,  which is the main A3 Trunk road out of London.  Part of the  site  is
subject to a detailed planning application to re-develop part of the scheme to
create  9,500 sq.  ft  of  business space  and  re-furbish  26,650  sq. ft  of
existing workspace accommodation.  The initial yield on the purchase price  is
8.2%.

The acquisition boosts Workspace's presence in the Wandsworth area.  The Group
owns  Glenville  Mews, a 44,968 sq. ft light industrial estate  and  Riverside
Business  Centre, a 82,516 sq. ft business centre purchased in  June  1999  as
part  of  the £75 million Tonex portfolio acquisition.  Both these  properties
have benefited from Workspace's active management techniques and investment in
services.

Harry Platt, Chief Executive commenting on the acquisition said,

'  This is a very exciting scheme for Workspace.  This project is the first to
come  out of our co-operation agreement with Greater London Enterprise.   This
agreement  was  established less than six months ago.   Within  the  next  six
months, I am confident that we will be able to announce further ventures  with
our GLE partners.

'   We have the management skills and investment resources to improve business
space  for our customers and our return on investments. With the  regeneration
and  development expertise of GLE, together with its links with London's Local
Authorities  the partnership gives us an excellent and unrivalled platform  in
London  to stimulate both the growth of new and emerging small businesses  and
to  regenerate areas. By increasing the scale of our business,  we continue to
be focused on delivering excellent returns for our shareholders.'


Date: 10 October 2000
For further information contact:

Harry Platt, Chief Executive                     Simon Courtenay
Workspace Group PLC                              Ed Senior
020-7247-7614                                    020-7726-8588
e-mail: [e-mail]                e-mail: [e-mail]
Web: www.workspacegroup.co.uk