Acquisition

Workspace Group PLC
8 January 2001

                         WORKSPACE BOUNDS AHEAD WITH                          
                           £5.1m HARINGEY PURCHASE    
                        
Workspace   Group  PLC   ('Workspace')   the  leading   provider  of  flexible
accommodation to  small and medium sized enterprises (SME's) in London and the
South East, has today exchanged contracts for the purchase of the Bounds Green
Industrial Estate, Bounds  Green Road, London N11, from Haringey Council, for
£5.1m. 

The  110,700  sq.   ft  (10,300 sq. m)   site  comprises  51 individual light-
industrial  units.   It  produces  a rental income of £448,731 per annum.  The
purchase represents an  initial yield of 8.3% with a reversionary potential of
11.5%. The 6.5-acre site has excellent transport links,  extensive car parking
facilities and is well  located next  to the North  Circular. The Bounds Green
Industrial  Estate  has  a  variety  of  small  business  tenants, including a
cosmetics company, computer retailers and a book exporter.

The  acquisition  boosts  Workspace's  presence  in the North London area. The
Group owns The Chocolate Factory, a converted Barratts sweet factory in nearby
Wood Green, as well as the N17 Studios located on the High Road in Tottenham. 

Harry Platt, Chief Executive, commenting on the acquisition said, 

' This is another  excellent purchase for Workspace.  We are buying a superbly
located and well-established estate.  The property is already producing a good
income stream, which we are confident that we can improve. 

' We can see significant potential for further improvements at the estate.  We
know from our other North London sites  that the demand for this type of space
is high.  By applying our active management skills we can drive the returns at
Bounds Green even higher.  There is also  the potential for future development
at this key site just off the North Circular Road. 

' Our  recent  trading  activities  have  given  us  the  firepower to acquire
excellent properties such as these. In the last six months we have contracted,
or have placed in legal hands, over £30 million of acquisitions. We anticipate
announcing further deals in the near future.'
                                                                              
                                                                   
Date: 8 January 2001 

For further information contact:

Harry Platt, Chief Executive                    Simon Courtenay
Workspace Group PLC                             Ed Senior
020-7247-7614                                   020-7726-8588
e-mail: [e-mail]               e-mail: [e-mail] 
Web:   www.workspacegroup.co.uk