Acquisition

Workspace Group PLC
7 January 2002

                         WORKSPACE INVESTS £21M WITH

                   HAT-TRICK OF CENTRAL LONDON ACQUISITIONS

Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs') in London and the
South East, has announced the acquisition of three properties in central
London from Chelsfield plc for a net cash consideration of £20.6 million.

The first property is Surrey House in Lavington Street, Southwark, London SE1.
The site is adjacent to Workspace's existing property at Great Guildford
Business Square Centre. It comprises 16,695 sq. ft (1,551 sq. m) of office
space laid out over 5 floors. It was purchased for £5.0 million and is let
currently to the Inland Revenue. The annual rent is £335,000 with new lease
terms being negotiated.

The second property is Clerkenwell Workshops in Clerkenwell Close, London,
EC1, which has been acquired for £9.1 million. The property comprises
workshops, studios and offices in 2 multi-storey Victorian warehouse buildings
set around a courtyard covering 69,583 sq. ft (6,464 sq. m). It is one of the
UK's first workspace style schemes and has some 150 individual business
sub-tenants. The property is currently subject to a head-lease, which expires
in 2003 at a current rent of £109,000 (subject to an outstanding rent review)
and an estimated rental value (ERV) in excess of £900,000 with potential for a
substantial uplift following refurbishment.

The third property is Union Court, Union Road, Clapham, London, SW4, which has
been acquired for a net consideration of £6.5 millioon. It comprises a
business centre totalling 67,500 sq. ft (6,270 sq. m) much of which has been
refurbished recently. As a result the property is currently 54% let with
vacant space refurbished to provide 'loft-style' business suites. The current
rental income is £301,000 with an ERV of £750,000 which represents a
reversionary yield of 10.6%.

Harry Platt, Chief Executive of Workspace commented,

' We are pleased to secure these three properties which are well located in
central London in areas we know well. All show considerable potential for
improvement in rental and capital values.

' The re-investment of the proceeds of our Midlands portfolio sale into assets
like these will generate good long-term returns for our shareholders,
especially as we strengthen our position as the leading provider of space for
SMEs in London. '

                                   - ends -

Date: 7 January 2002

For further information please contact:

Workspace Group PLC                    City Profile Group
Harry Platt, Chief Executive           Simon Courtenay
Mark Taylor, Finance Director          Ed Senior
020 7247 7614                          020 7448 3244
e-mail: [e-mail]      e-mail: [e-mail]
Web: www.workspacegroup.co.uk