Acquisition and Disposal

Workspace Group PLC 24 November 2003 WORKSPACE COMPLETES TWO DEALS IN NORTH LONDON Workspace Group PLC, ('Workspace'), the leading provider of flexible business accommodation to small and medium sized enterprises ('SMEs'), has completed two property deals totalling over £21 million. Acquisition of the Atlas Business Centre, NW2 The Group has completed the purchase of the Atlas Business Centre, a freehold industrial estate at Staples Corner, London NW2 for a cash consideration of £12.6 million. The property is a 108-unit multi-let business centre, comprising 155,000 sq ft of lettable space laid out in a two-storey office building, that operates as a serviced office centre, together with an estate of small industrial warehousing units to the rear. It is well located close to the intersection of the North Circular Road, M1 motorway, and A5 Edgware Road. The property currently produces a net rental income of £1.13m per annum at an average gross rent of £8.37 per sq. ft and with scope for improvement. The current occupancy level of the estate is 87%. The property has been acquired from the Ashtenne Industrial Fund Limited Partnership. Disposal of Kingsland Viaduct, Hackney, E1 At the same time it has also sold its leasehold interests in Kingsland Viaduct, Hackney for £8.25m to London Underground Limited. The sale paves the way for the proposed East London Line Extension (ELLX). Workspace acquired the leasehold interests in this mile long length of railway arches in 1996 and has undertaken a capital investment programme to refurbish a number of the arches. London Underground Limited exercised compulsory purchase powers in 2001 to obtain management and operational control of the viaduct, and has agreed to acquire the Group's interests for £8.25m, including compensation. Harry Platt, Chief Executive, commented 'Atlas is an important acquisition for the Group. It fits our criteria perfectly and it will complement our existing properties in Bounds Green and Park Royal. The Group is now able to offer a range of flexible, affordable accommodation along the North Circular Road. 'The sale of Kingsland Viaduct scheme frees London Underground to pursue the commissioning of the East London Line Extension and provides an appropriate exit for Workspace. We intend to reinvest the proceeds in further property assets in London. 'As we have announced in our interim results today, our stated aim is to double the size of the business over the next five years, strengthening our position as the leading supplier of space in London for the SME sector. With the capacity for significant further investment, Workspace will continue to seek further opportunities to realise this strategy.' -ends- Date: 24 November 2004 For further information: Workspace Group PLC City Profile Group Harry Platt, Chief Executive Simon Courtenay Mark Taylor, Finance Director 020-7448-3244 020-7247-7614 --------------------------------- e-mail: info@workspacegroup.co.uk web: www.workspacegroup.co.uk --------------------------------- This information is provided by RNS The company news service from the London Stock Exchange
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