Acquisitions & Disposal

Workspace Group PLC
12 June 2001


                             Workspace Group PLC

       WORKSPACE FOCUSES ON LONDON AND SOUTH EAST AS DEALS KEEP FLOWING

Workspace Group PLC, ('Workspace') the leading provider of flexible
accommodation to small to medium sized enterprises (SMEs) in London and the
South East has today announced the purchase of four properties for a total
consideration of £7.0 million, and the exchange of contracts on another
property for £4.2 million. The purchases add a further 136,000 sq. ft
(12,635sq. m) of flexible business space to the Company's portfolio.
Additionally, Workspace has disposed of a vacant plot of land for £458,000 and
exchanged contracts for the disposal of an industrial estate for £2.8 million.

The purchases comprise:

Harlow Enterprise Centre, Burnt Mill Industrial Estate, Harlow, Essex,
purchased from Norchester Estates, a private property company, for £3.6
million. The 51,851 sq. ft (4,817sq. m) site comprises 28 light industrial
units let to a variety of SME tenants. The site is part of an established
industrial complex close to Harlow town centre. The estate is 97% let and
generates an annual income of £344,325. The average passing rent at the
property is £6.64 per sq. ft. The purchase reflects an initial yield of 9.6%.

Redbridge Enterprise Centre, Thompson Close, Ilford, Essex, also purchased
from Norchester Estates for £1.5 million. The 20,080 sq. ft (1,865 sq. m)
business centre comprises 20 light industrial units of 1,004 sq. ft (93 sq. m)
each. The estate generates an annual income of £146,400 and represents an
initial yield of 9.8%. The average passing rent at the site is £7.48 per sq.
ft. The property is 95% occupied by a variety of SME tenants. It is well
located in a commercial suburb close to Ilford town centre. The centre is
serviced by road links to the North Circular and also has good public
transport links, with Central London only 15 minutes away by train.

Parma House, Wood Green, London N22, purchased from Hallway properties at
auction for £1.6 million. The 36,509 sq. ft (3,392sq. m) property is opposite
an existing Workspace holding, The Chocolate Factory. The property will
produce a yield of 12% when the vacant space is let. The investment currently
produces £50,670 per annum. Both properties are located in the 14 hectare (35
acre) Haringey Heartlands regeneration area, intended to provide a mix of
arts, media, leisure and residential land uses within the Borough.

5 Payne Road, London, E3, purchased for £300,000. The property adjoins the
Company's existing Payne Road Studios scheme. The property is let to a single
tenant and provides 3,307 sq ft (307 sq. m) of accommodation. The unit
generates an annual rent of £25,000. The passing rent is £7.55 per sq. ft and
the purchase reflects an initial yield of 8.3%. Workspace is examining
alternative redevelopment and refurbishment options for the site.

Quality Court, London WC2: Contracts have been exchanged to acquire Quality
Court, off Chancery Lane London (WC2) for £4.2m from City & Estates Ltd. The
building is Grade II listed and provides approximately 24,102 sq ft (2239 sq
m) gross internal on lower ground, ground and three upper floors. The building
is shortly to be vacated by the London School of Economics and has Planning
and Listed Building Consent for refurbishment and extension to provide a net
21,825 sq ft (2,028 sq m) of high quality office accommodation.

The building is well located in the heart of Mid-town, a location which has a
limited supply of vacant offices, and has benefited from strong rental growth.
It is intended the property will be targeted to small occupiers in a serviced
office environment. Refurbishment works will commence in July, following
vacant possession, and will be available for occupation in mid 2002.

Workspace Group has also sold a plot of vacant land at Ferry Lane, Rainham,
Kent, to the London Development Agency. The plot was originally a five-unit
industrial estate providing 34,635 sq. ft (3,217sq. m) valued at £940,000 in
March 1999. The estate was severely fire damaged in July 1999 and the Group
received an insurance settlement of £1.36m after demolishing the remaining
buildings. The cleared site was sold for £458,000.

Workspace has also exchanged contracts for the sale of the leasehold interest
with 69 years unexpired in the Ashburton Commercial Centre in Islington for £
2.8 million. The Asburton Commercial Centre is a 1970's industrial estate of 5
two-storey units totalling 63,065 sq. ft. The estate is producing a net income
of £230,000 per annum, which shows an exit yield of 8.2%.

Chief Executive, Harry Platt, commented;

' Our acquisition programme is continuing apace. We aim to acquire
opportunities where we can enhance significantly the returns by managing the
properties actively. These purchases show how we look for opportunities to
expand our portfolio, to extend our existing sites and to extend our product
range. At Harlow and Redbridge we are buying well let, well located, high
yielding schemes. At Payne Road and Parma House we have bought properties
adjoining our existing holdings. The potential to develop the rental streams
from our portfolio is central to our acquisition strategy. We are actively
seeking out sites such as these where we can add value.

'At Quality Court, we intend to target smaller occupiers in the professional
services - providing them with a high quality serviced office environment.
This will be a further extension of our business offering.'

' We are planning to double our South East portfolio over the coming years.
Workspace is taking a stake in the South East's SME sector expansion. The
market is very fragmented and offers us huge opportunities to grow. We are
keen to reinforce our dominant position as the South East's leading provider
of space to SMEs.'

                                    -ends-

Date: 12 June 2001

For further information contact:
Harry Platt, Chief Executive              City Profile Group

Workspace Group PLC                       Simon Courtenay

020-7247-7614                             Ed Senior

e-mail: [e-mail]         020-7726-8588

Web: www.workspacegroup.co.uk             e-mail: [e-mail]