Update on Workspace Glebe Lim

RNS Number : 8506Y

Workspace Group PLC

10 September 2009

 



Workspace Group PLC 

Update on Joint Venture Workspace Glebe Limited ('the Joint Venture' or 

'Workspace Glebe')

Workspace Group PLC ('Workspace') has received notification from its Joint Venture partner, Glebe Two Limited ('Glebe Two'), that its shareholders have placed Glebe Two into voluntary liquidation. This was a result of Workspace Glebe Limited ('Workspace Glebe') being unable to reach a restructuring of its banking facilities with its bankers within a timescale and form satisfactory to Glebe Two's shareholders.

Workspace Group PLC will continue to manage the portfolio of assets held within Workspace Glebe in the normal course of its business without interruption whilst negotiations continue to the satisfaction of Workspace with the bankers to Workspace Glebe.

As previously disclosed, Workspace Group PLC has written down its equity interest in the Joint Venture to zero and has fully provided against the interest shortfall guarantee.  Unless otherwise required, Workspace would expect to update its shareholders further on progress at the time of its interim results in November 2009.

For further information contact: 

Workspace Group PLC	Tel: [phone]
Harry Platt, Chief Executive
Graham Clemett, Finance Director
City Profile	Tel: [phone]
Jonathan Gillen
Will Attwell

Background to Workspace Glebe:

• The Joint Venture between Workspace and Glebe Two was established in 2006 to promote the intensification and change of use at 18 estates across London. The majority of properties were sold by Workspace into the Joint Venture in June 2006 taking advantage of attractive values at a high point in the market.

• The Joint Venture has non-recourse debt facilities apart from an interest shortfall guarantee under which the Joint Venture partners have a maximum liability of £6m, of which c£2m has been contributed to date.  The remainder has been fully provided for in the financial statements of Workspace.

 

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