Acquisitions and Disposals
Workspace Group PLC
14 October 2002
ACTIVE WORKSPACE MAKES PROGRESS
WITH FLURRY OF DEALS
Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs') in London and the
South East, announces that the Group has completed two acquisitions, one
disposal and has made significant progress on an added value programme at an
existing property.
ACQUISITIONS
Enterprise House - Southwark
Workspace has completed the purchase of three adjoining freehold interests in
London SE1 for £16.025 million in cash, from Shaftesbury PLC. This acquisition
was announced formally on 12 September 2002.
Known as Enterprise House, 59/65 Upper Ground, 1 and 2 Hatfields, and Hatfield
House, 52/54 Stamford Street, the buildings comprise nearly 70,000 sq. ft of
commercial space in Southwark, close to the OXO Tower complex. Producing an
income of just under £1.3 million per annum, with 12,500 sq. ft of vacant space,
there is significant potential to increase the initial yield from 7.2% to over
10% with the letting of the vacant space. Part of the complex is already run as
a small business centre.
The premises are let currently to a mix of large and small businesses including
IPC Media, GMTV and Granada Group. Workspace already has a significant presence
in the area. This acquisition adds to its portfolio of properties on London's
South Bank.
Farnborough Business Centre
Workspace has also completed the acquisition of Farnborough Business Centre from
Eagle Star for £3.8 million in cash, representing a net initial yield of 8.2%,
which should rise to 9.1% by 2004.
Farnborough Business Centre comprises 16 small business units totalling 24,370
sq. ft. The purchase of the scheme is complementary to Workspace's existing
holdings at Woking and Camberley and will enable its small unit offer in this
area to be enhanced significantly.
DISPOSALS
Brook Road, Redhill
Following its purchase in 1999 and the exercise of an option over adjoining land
owned by BP Fuels, Workspace has concluded the onward sale of a small site to an
owner occupier for £750,000, representing a £270,000 surplus over the book
value.
PROGRESS ON 'ADDED VALUE' SCHEMES
Three Mills - Planing consent granted for Residential Development
At a number of Workspace's properties there are opportunities to add significant
value. The Group had received outline planning consent on 9 January 2002 and it
has now completed successfully a Section 106 agreement with Newham Council for
its residential development of 47 live/work units on vacant land at Three Mills
in Stratford, London, E3. This is a joint venture with Copthorn Homes, a
subsidiary of Countryside Properties PLC. Outline planning permission was
granted.
Harry Platt, Chief Executive of Workspace, commented;
' Our business continues to be active on a number of fronts, and we are making
encouraging progress. Enterprise House is a significant purchase for the Group,
complementing our existing South Bank portfolio. The Group now has a series of
properties stretching from Deptford in the East to Vauxhall in the West, in key
growth areas. The scheme is located in an area popular with creative industries.
It will appeal to those that appreciate attractive character accommodation and
the Group's flexible leasing arrangements.
' Acquisitions such as this and Farnborough mark a further step in progress to
meet the Group's strategy of doubling the portfolio over five years,
strengthening our position as the leading supplier of space in London and the
South East for the SME sector.
' Meanwhile, our progress on schemes to add value and disposals continues to
show the considerable latent potential in our existing portfolio and the robust
nature of our underlying property valuations. With the capacity for significant
further investment, the Group continues to seek further acquisition
opportunities.'
- ends -
Date: 14 October 2002
For further information contact:
Workspace Group PLC City Profile Group
Harry Platt, Chief Executive Simon Courtenay
Mark Taylor, Finance Director Ed Senior
020 7247 7614 020 7488 3244
e-mail: info@workspacegroup.co.uk e-mail: simon.courtenay@city-profile.com
Web: www.workspacegroup.co.uk
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