Acquisition

Workspace Group PLC
12 February 2001


                             WORKSPACE ACQUISITION
                             PROGRAMME GATHERS PACE
 
Workspace   Group   PLC   ('Workspace') the  leading  provider   of   flexible
accommodation to small and medium sized enterprises (SME's) in London and  the
South  East,  has  today  announced  a pair of  acquisitions  totalling  £10.7
million.

The acquisitions comprise:

*    Villiers Road Business Park, Kingston-upon-Thames

*    Block F, Tower Bridge Business Complex, Bermondsey, London SE1

The  Villiers  Road scheme is the second deal to be contracted under  the  co-
operation  agreement between Workspace and GLE Properties to acquire,  develop
and  manage  flexible accommodation for SME's in London. GLE is the specialist
property  and  economic  regeneration  business  division  of  Greater  London
Enterprise, and is owned by all the London Boroughs and the City Corporation.

The Royal Borough of Kingston-upon-Thames is providing a 1.6 acre site for the
scheme  and  GLE  will develop 42,000 sq. ft (3,900sq. m)  of  small  business
accommodation with completion anticipated late 2001. The scheme will  comprise
20  two-storey B1 units between 950 and 4,000 sq. ft. and will be marketed  to
small  businesses  in  the area requiring accommodation  to  let  on  flexible
leasing  terms. The site is expected to yield 12% on cost, based on  estimated
rental  values.  Workspace will also offer its added value  services  such  as
insurance provision to customers at the site.

At  Tower Bridge Business Complex, Workspace has completed its purchase of the
570,000  sq. ft (53,000 sq. m) site with the acquisition of Block F, totalling
142,000  sq. ft (13,200 sq. m) of space. The purchase price is £6.5m  with  an
additional  sum  dependant  upon the outcome of a  rent  review  currently  in
progress.  The  Business  Complex, a former Peek Frean  biscuit  factory,  was
purchased as part of the £74.7m portfolio of properties acquired from Tonex in
1999. The purchase of Block F was deferred at the time of the Tonex deal.  The
space  is  let  at  an  annual rent of £355,000 per annum to  Dudley  Business
Services Ltd on a lease expiring in 2026. An initial yield of 5.4% is expected
to increase substantially following settlement of the rent review.

Tower  Bridge  Business  Complex is undergoing a  refurbishment  programme  to
provide  large  office  floor  plates and  secure  storage  space.  Since  the
acquisition by Workspace, occupancy has improved and the average rent per  sq.
ft  has  risen  from £3.29 to £5.07, a 54% increase. Tenants  now  include  TV
production  companies,  web  site developers,  an  international  credit  card
company and Andrew Lloyd Webber's Really Useful Company.

Harry Platt, Chief Executive, commenting on the acquisition said,

'In the last three months we have announced a number of acquisitions, as  we
re-invest funds from our successful disposal of 169 Union Street, Southwark in
the last quarter.

'Tower Bridge is a key site in our portfolio. Since we acquired the site  in
1999,  our  unique style of active management has pushed rents  and  occupancy
levels  ahead strongly. Demand for refurbished space at the site is increasing
and we are achieving rents in excess of £10 per sq. ft.

'The  development  at Villiers Road in the Royal Borough  of  Kingston  upon
Thames is an excellent scheme in a prosperous part of the South East where  we
have  looked  for representation for some time. Our partnership  with  GLE  is
gaining momentum. The partnership marries our knowledge of the SME sector with
GLE's  development expertise and links with local authorities. This allows  us
to  stimulate local employment growth and urban regeneration, and  source  new
schemes.

'We  are taking the opportunity to buy into the South East's SME growth  and
are  keen to expand our portfolio here, to reinforce our dominant position  as
the Capital's leading provider of space to SME's.'


Date: 12 February 2001

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