Acquisitions

Workspace Group PLC
07 April 2005

                          WORKSPACE ADDS TO PORTFOLIO
                                      AND
                            PROGRESSES DEVELOPMENTS

Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs') in London and the
South East continues to expand its property portfolio. It has announced that it
has recently completed three acquisitions for an aggregate cash consideration of
£12.29m.

It has also obtained planning consent for a major mixed use residential and
commercial development on its site in Wharf Road, Islington, N1. Further
planning applications are in hand for similar developments on other sites.

Acquisitions

Workspace has made three acquisitions adding a further 114,807 sq ft. of space
its portfolio. The acquisitions comprise:

Lombard House and Lombard Business Park, 2 Purley Way, Croydon - 77,380 sq ft of
office and industrial accommodation prominently located at the northern end of
Purley Way. The property is fully let, producing an income of £686,750 p.a.
showing a net initial yield of 8.4% on the purchase cost of £7.75m.

Lewis House, 3A School Road and 99 Victoria Road, Park Royal - Three adjoining
properties which total 22,201 sq ft and produce a rent of £179,600 p.a. This
acquisition provides a net initial yield of 7.1% on the purchase price of £2.37
million.

The Homesdale Business Centre, 216-218 Homesdale Road, Bromley, Kent - 15,226 sq
ft of small unit office accommodation in fourteen units which has been acquired
for £2.16m, showing a net initial yield of 7.17% with scope for improvement to
8.25% on full occupancy at current rental values.

All three acquisitions complement Workspace's existing holdings and further
consolidate the Group's position as the leading provider of space to SMEs in
London.

Planning Consent

Workspace has obtained planning consent for a mixed use redevelopment of its
site in Wharf Road, Islington, N1. The consent allows for the demolition of the
existing buildings, to be replaced by a development comprising 30,000 sq ft of
commercial space and 77 residential units in buildings of up to 10 storeys in
height.

Applications have also been submitted for the Group's site at Thurston Road,
Lewisham where consent for a high density mixed retail and residential scheme is
being sought, and for a high density mixed commercial and residential
development at its site at Highbury Grove, Islington, N1. The decision on this
latter application is anticipated in May 2005.

Harry Platt, Workspace Chief Executive commented,

' I am delighted to round off the current financial year with these
acquisitions, which we have been following for some time. We have a strategy to
create local clusters of properties that blend well together. This enables us to
offer our customers an increased range of accommodation. The acquisitions in
Croydon and Park Royal will compliment our other sites in these areas
particularly well.

' We continue to monitor a number of other possible acquisitions and remain
confident that we can add around £60m in new acquisitions each year.

' We are extremely pleased to have obtained planning consent for our site on
Wharf Road. This demonstrates that our policy of being able to add significant
value through the planning process is succeeding. Local planning authorities are
recognising increasingly the benefits of permitting mixed use development on
land previously allocated solely for employment purposes. We are confident that
this trend of increasing site densities in urban areas will continue to gather
momentum. This bodes well for Workspace. We have made similar planning
applications for the development of two further sites and are looking at the
possibility of making applications on a number of others.

'Occupancy has improved slightly over the final quarter of the financial year
and some further growth in rentals has been secured, marking further steady
growth by the business.'

                                     -ends-
Date: 7 April 2005
For further information:

Workspace Group PLC                                 City Profile Group
Harry Platt, Chief Executive                        Simon Courtenay
Mark Taylor, Finance Director                       James Cooper
020-7247-7614                                       020-7448-3244
e-mail: [e-mail]
web: www.workspacegroup.co.uk



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