Sale of residential redevelopment site

RNS Number : 2555R

Workspace Group PLC

24 October 2013

 



24 October 2013

Workspace Group PLC

Workspace announces sale of residential redevelopment site to Grosvenor

Workspace Group PLC ("Workspace"), London's leading provider of space to new and growing companies, announces an agreement with Grosvenor Britain & Ireland ("Grosvenor"), the privately-owned international property group.

The agreement relates to a mixed-use redevelopment at its 11 acre Tower Bridge Business Complex, Clements Road, London, SE16 (the "Biscuit Factory"). Workspace obtained planning consent in May 2013 for 800 new residential units on 7 acres of the site together with 60,000 sq.ft (gross) of new business space.

Under the terms of the agreement with Grosvenor: 

• Workspace will receive £51m in cash. £48m will be payable on a phased basis as vacant possession is achieved on the 7 acres of land being sold for the residential redevelopment . Full vacant possession is expected to be achieved by January 2016. A further £3m in cash will be payable on completion of each stage of the redevelopment

• Grosvenor will  construct for Workspace (at Grosvenor's expense) a new commercial building (with 47,000 sq ft of net lettable space) at an estimated cost of £11m, on the land retained by Workspace. This increases the amount of business space at the Biscuit Factory  to 270,000 sq.ft

• Grosvenor will also be responsible for all required infrastructure improvements, including landscaping and the creation of a community park on a further 1 acre of the site being sold to Grosvenor

The new residential scheme and new commercial space replace 330,000 sq.ft of existing warehouse and light industrial units which were valued at 31 March 2013 at £29m.

Jamie Hopkins, Chief Executive Officer of Workspace Group Plc, commented:

"This is another milestone for Workspace in its redevelopment activity. We are delighted to have a partner of the calibre and track record of Grosvenor to take forward the residential component of the redevelopment. Once completed this will be a thriving residential and business location, providing Southwark with its largest hub for small and growing businesses. This partnership will deliver significant value for our shareholders and considerable benefit to the local community.

"London has the opportunity to become the entrepreneurial capital of the world.  It is important that we continue to redevelop sites like this across London, that will attract people and businesses who are looking to live and work in dynamic locations with good transport links at the centre of the city."

For further information contact:

Workspace Group PLC Jamie Hopkins, Chief Executive Officer Graham Clemett, Chief Financial Officer	020 7138 3300
Pelham Bell Pottinger Victoria Geoghegan Nick Lambert Duncan Mayall	020 7861 3925

About Workspace Group PLC

• Workspace is a FTSE250 company and has been listed on the London Stock Exchange since 1993;
• It has a strong 25 year track record in providing tailored business premises to growing companies in London;
• It owns and manages c.100 properties in London providing  5.1 million square feet of space and is home to c.4,000 businesses employing over 30,000 people; and
• For more information on Workspace, please visit: www.workspace.co.uk

 

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