Acquisition and Update

Workspace Group PLC 22 October 2007 WORKSPACE SCORES DOUBLE SUCCESS IN LONDON Workspace Group PLC ('Workspace'), the leading provider of flexible business accommodation to small and medium sized enterprises in London, today announces that it has completed a £10.8 million acquisition in central London and, that it has been granted planning permission for its £85 million joint venture development in Wandsworth. Acquisition - Neil House, Whitechapel Road, London, E1 Workspace has acquired Neil House, Whitechapel Road, London, E1 from Panther Securities PLC. This property is well located on the corner of Whitechapel Road and Osborne Street, just on the edge of the City. The building totals 43,592 sq. ft with retail units at ground level and offices above. The purchase price is £10.8 million and the property is currently producing an income of £415,260 per annum with 40% of the building vacant. The estimated rental value is £879,000 which represents an income yield of 8.1%. Workspace Glebe Joint Venture Secures First Planning Permission Workspace has also announced that its development joint venture with Glebe has secured its first planning permission. The application to regenerate the existing Wandsworth Business Village commercial site with a mixed-use scheme, has been approved by Wandsworth Borough Council. The scheme represents an investment of £85 million. The Wandsworth scheme includes a new business centre, providing 94,000 sq. ft of commercial space for small and medium sized businesses, 209 homes made up of both private and affordable units, a nursery/creche, a new cafe/retail space and a landscaped public square. Alongside several other major projects, the Workspace Glebe joint venture development will play a key role in the regeneration of Wandsworth town centre. Harry Platt, Chief Executive of Workspace commented, ' The current downturn in the market is creating opportunities for us to buy properties that offer significant potential to release value in the future. ' We are delighted to have acquired Neil House. It has been on our target list for some time. We know the location extremely well, as we have already established a cluster of properties in the area. ' We are confident that by implementing our active asset management skills we will be able to grow the rental income significantly. The recent Crossrail announcement underpins our confidence in this part of London, which we expect to deliver above average performance over time.' Referring to the planning permission granted for the Wandsworth regeneration scheme Harry added, ' The granting of planning permission for our redevelopment scheme in Wandsworth is a significant milestone for the Glebe joint venture. ' This is a classic example of the appealing nature of our mixed use projects that find favour with local authorities. We aim to invest in local communities to create vibrant and sustainable developments. ' By establishing a very clear understanding of the local planning issues, we have the skills and experience to deliver proposals that fit with the long-term regeneration initiatives being sought by local authorities.' -ends- Date: 22 October 2007 For further information: Workspace Group PLC cityPROFILE Harry Platt, Chief Executive Simon Courtenay Graham Clemett, Finance Director William Attwell 020-7247-7614 020-7448-3244 web: www.workspacegroup.co.uk This information is provided by RNS The company news service from the London Stock Exchange
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