Termination of Glebe Proceeds Share Agreement

RNS Number : 5281A

Workspace Group PLC

23 December 2014

 

23 December 2014

WORKSPACE GROUP PLC

TERMINATION OF GLEBE PROCEEDS SHARE AGREEMENT

Workspace Group PLC (Workspace), London's leading provider of space for new and growing companies, has agreed terms with the former lenders to the Glebe joint venture for the termination of the Glebe Proceeds Share Agreement ('GPSA') in return for a cash payment of £30m. The payment reflects a successful conclusion for both parties to the acquisition by Workspace of full control of the former Glebe joint venture in 2009 for an initial consideration of £83m.

The Glebe portfolio comprised 11 commercial properties. Some of these properties have mixed-use redevelopment potential with the residential component sold once planning has been obtained. The total value of the portfolio (including disposal proceeds received) at 30 September 2014 was £267m.

The maximum that could have been payable under the GPSA was £48m with £20m recognised at 30 September 2014. The termination payment of £30m will give rise to a £10m reduction to the net asset value reported at 30 September 2014, equivalent to 6p per share.

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For further information contact

Workspace Group PLC Jamie Hopkins, Chief Executive Officer Graham Clemett, Chief Financial Officer	Tel: [phone]
Bell Pottinger Victoria Geoghegan    Nick Lambert Elizabeth Snow	Tel: [phone]

Notes to Editors

About Workspace Group PLC

·      Workspace is a FTSE250 Company and has been listed on the London Stock Exchange since 1993

·      It has a strong 27 year track record in providing tailored business premises to new and growing companies in London

·      For more information on Workspace, please visit www.workspace.co.uk 

 

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