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 This information is provided by RNS The company news service from the London Stock Exchange
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