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WorkspaceAnnouncement

06/09/2014 16:39

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RNS Number : 4157M
Workspace Group PLC
16 July 2014 
 
16 July 2014 
 
WORKSPACE GROUP PLC 
 
INTERIM MANAGEMENT STATEMENT 
 
Workspace Group PLC ("Workspace"), London's leading provider of space to new
and growing companies, announces its Interim Management Statement covering the
period from 1 April 2014 to the date of this announcement, including the
operational statistics for the quarter to 30 June 2014. 
 
Highlights 
 
·    Total rent roll of £61.0m up 4.6% (£2.7m) in the quarter and up 14.9%
(£7.9m) over the last twelve months from 30 June 2013. 
 
·    Like-for-like rent roll up 3.3% (£1.3m) in the quarter to £41.1m and up
by 10.8% (£4.0m) over the last twelve months from 30 June 2013. 
 
·    Like-for-like occupancy at 90.6%, up 0.6% in the quarter with rent per
sq.ft up 2.5% in the quarter to £14.96. 
 
·    Strong demand at our completed refurbishment and redevelopment projects,
with rent roll up £1.2m in the quarter to £7.1m. 
 
·    Acquisition of Vestry Street Studios, N1 and 12-13 Greville Street, EC1 
completed in the quarter for £14.9m. 
 
·    Planning permission secured for the second phase of the mixed use
redevelopment at The Filaments, SW18. 
 
·    Entered into agreements with residential developers for the mixed use
redevelopments at The Faircharm, SE8 and the second phase at Bow Enterprise
Park, E3. 
 
Outlook 
 
Jamie Hopkins, Chief Executive Officer commented: 
 
"This has been a good start to the financial year with strong demand for our
tailored space driving growth in pricing and rent roll. Our focused asset
management and clear understanding of our customers' requirements continues to
deliver value for shareholders. 
 
We have increased our footprint across London, launching new buildings in
areas attractive to our customers, such as Screenworks in Islington and Pill
Box in Bethnal Green. In addition, our presence in Midtown has been
strengthened with the acquisition of properties in Holborn and Farringdon. We
continue to explore refurbishment and redevelopment options throughout the
portfolio as well as making selective property acquisitions in the right
locations where we can offer the services and facilities that suit our
customers' needs." 
 
-     Ends    - 
 
For further information contact 
 
 Workspace Group PLCJamie Hopkins, Chief Executive OfficerGraham Clemett, Chief Financial Officer Web: www.workspace.co.uk  Tel: 020 7138 3300  
 Bell PottingerVictoria Geoghegan   Nick LambertElizabeth Snow                                                              Tel: 020 7861 3925  
 
 
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 25 year track record in providing tailored business
premises to growing companies in London; 
 
•      It owns and manages 97 properties across London providing 5.0 million
square feet of space and is home to some 4,000 businesses employing over
30,000 people; 
 
•      For more information on Workspace, please visit www.workspace.co.uk 
 
OCCUPANCY AND RENT ROLL 
 
Like-for-like Portfolio 
 
 Like-for-Like         Jun 2014  Mar 2014  Dec 2013  Sep 2013  Jun 2013  
 Number of properties  57        57        57        57        57        
 Occupancy             90.6%     90.0%     90.5%     91.0%     90.2%     
 Rent roll             £41.1m    £39.8m    £38.7m    £38.0m    £37.1m    
 Rent per sq. ft.      £14.96    £14.59    £14.07    £13.75    £13.55    
 
 
The like-for-like property portfolio performance has been restated for both
the current quarter and the prior quarter comparatives to exclude Hatton
Square Business Centre, Barley Mow Centre, Enterprise House, Linton House and
Bounds Green which are undergoing refurbishment and Poplar Business Park which
will be redeveloped. 
 
Like-for-like rent roll has increased by £1.3m in the quarter to 30 June 2014
with strong demand driving further uplift in pricing levels. Like-for-like
rent per sq. ft. was up 2.5% to £14.96 in the quarter to 30 June 2014 and up
10.4% over the last twelve months. 
 
Completed Projects 
 
Rental growth at our completed refurbishment and redevelopment projects is
becoming an increasingly significant component of overall growth, with rent
roll at completed projects up £1.2m in the quarter to 30 June 2014 to £7.1m. 
 
We have been delighted with the level of interest and lettings at our two most
recently completed schemes with occupancy at Pill Box, E2 which opened in
March 2014, now at 53% (average rent per sq.ft of £29) and occupancy at
Screenworks, N5 which opened in May 2014 already at 28% (average rent per
sq.ft of £36). In both cases occupancy and pricing are well ahead of our
initial expectations. 
 
Total Rent Roll 
 
Total cash rent roll is £61.0m at June 2014, up 4.6% (£2.7m) in the first
quarter. 
 
                                                                     £m     
 At March 2014                                                       58.3   
 Like-for-like growth                                                1.3    
 Increase in rent at completed projects                              1.2    
 Rent reduction at current refurbishment and redevelopment projects  (0.5)  
 Acquisitions                                                        0.7    
 At June 2014                                                        61.0   
 
 
Rent roll growth from the like-for-like portfolio and the completed projects
of £2.5m in the quarter has been partly offset by a £0.5m reduction in rent at
properties undergoing refurbishment and redevelopment.   The increase in rent
of £0.7m from acquisitions relates to the purchase of Vestry Street Studios in
May 2014 for £12.6m and 12-13 Greville Street in April 2014 for £2.3m and an
increase in rent roll  of £0.1m at 60 Gray's Inn Road which was acquired in
November 2013. 
 
Enquiries and Lettings 
 
                           Quarter Ended  
 Average numberper month:  Jun 2014       Mar 2014  Dec 2013  Sep 2013  Jun 2013  
 Enquiries                 1,222          1,292     917       1,010     1,033     
 Lettings                  104            103       80        84        74        
 
 
Enquiry levels remain high reflecting the strength of demand we are seeing for
space at our buildings across London. Lettings have increased over the last
two quarters benefiting from the 111,000 sq.ft of new space at the recently
opened Pill Box and Screenworks business centres. 
 
Refurbishment and Redevelopment Activity 
 
We continue to make good progress in line with our plans across a range of
refurbishment and redevelopment projects: 
 
·    We opened our new 61,000 sq.ft business centre in Islington, Screenworks,
in May 2014. This was built at no cost to Workspace as part of the
consideration for the sale of the planning consent we had obtained at this
site for 72 residential units to Taylor Wimpey. 
 
·    We completed the second phase construction of 21,000 sq. ft of new
industrial units at Leyton Industrial Village, E10 in May 2014 on time and in
line with budget at £2m. 
 
·    The upgrade and two floor extension at the Metal Box Factory, SE1
(creating a 102,000 sq.ft business centre) is expected to be completed in
September 2014 at a total estimated cost of £16m. We are already seeing strong
levels of interest for the new space at this attractive location on the
Southbank. 
 
·    We obtained planning consent in April 2014 for the second phase of the
mixed use redevelopment at the Filaments, SW18 for a further 77 residential
units and 18,000 sq.ft of commercial space. 
 
·    We sold the second phase of the mixed use redevelopment at Bow Enterprise
Park, E3 of 160 residential units to Peabody in April 2014 return for £11m in
cash and 3,000sq.ft of new industrial space. 
 
·    We entered into an agreement in May 2014 for the sale of 148 residential
units at our mixed use redevelopment at The Faircharm, SE8 to London &
Quadrant in return for £10m in cash and a new 52,000 sq.ft business centre. We
were delighted to receive a New London Award (NLA) at the NLA's Annual Awards
in July 2014 in the mixed use category for this redevelopment in recognition
of its pioneering design and architecture. 
 
·    We are currently marketing to developers the first phase of the
redevelopment at Poplar Business Park, E14 where we have planning consent in
total for 392 residential units and 70,000 sq.ft of new business space. 
 
Key Property Statistics 
 
                                                Quarter ending 30 Jun 2014  Quarter ending 31 Mar 2014  Quarter ending 31 Dec 2013  Quarter ending 30 Sep 2013  Quarter ending 30 Jun 2013  
 Workspace Group Portfolio                                                                                                                                                                  
 Number of estates                              84                          83                          83                          83                          84                          
 Lettable floorspace (million sq.ft.) U         4.5                         4.5                         4.6                         4.6                         4.6                         
 Number of lettable units                       4,701                       4,653                       4,543                       4,539                       4,543                       
 Cash rent roll of occupied units               £61.0m                      £58.3m                      £56.7m                      £54.1m                      £53.1m                      
 Average annual rent per sq. ft.                £15.73                      £15.12                      £14.11                      £13.58                      £13.26                      
 Overall occupancy                              85.7%                       85.8%                       87.1%                       86.8%                       86.9%                       
                                                                                                                                                                                            
 Like-for-like lettable floor space (m sq.ft.)  3.0                         3.0                         3.0                         3.0                         3.0                         
 Like-for-like cash rent roll                   £41.1m                      £39.8m                      £38.7m                      £38.0m                      £37.1m                      
 Like-for-like average annual rent per sq.ft.   £14.96                      £14.59                      £14.07                      £13.75                      £13.55                      
 Like-for-like occupancy                        90.6%                       90.0%                       90.5%                       91.0%                       90.2%                       
                                                                                                                                                                                            
 BlackRock Workspace Property Trust                                                                                                                                                         
 Number of estates                              13                          14                          14                          15                          15                          
 Lettable floorspace (million sq.ft.)           0.5                         0.5                         0.5                         0.5                         0.5                         
 Cash rent roll of occupied units               £6.2m                       £6.4m                       £6.4m                       £6.5m                       £6.3m                       
 Average rent per sq. ft.                       £14.84                      £14.66                      £14.57                      £14.48                      £13.96                      
 Overall occupancy                              89.1%                       87.7%                       89.1%                       88.5%                       88.0%                       
                                                                                                                                                                                            
 
 
U Excludes storage space 
 
This information is provided by RNS
The company news service from the London Stock Exchange