Workspace sees healthy demand for space as development of pipeline progresses
Workspace Group reported “good” levels of demand for space through its first quarter on Thursday, at both its like-for-like properties and its recently-completed projects.
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The FTSE 250 real estate investment trust said enquiries averaged 1,060 per month, up from 1,021 at the same time last year, and lettings averaged 121 per month, rising from 88.
On the development front, the firm noted that in April it completed the refurbishment of The Light Box in Chiswick, comprising a 19,000 square foot roof extension and a “significant” upgrade to the common areas.
In June it completed two new buildings, the first being Brickfields - adjacent to Hoxton station, with 57,000 square feet of net lettable space comprising 98 offices and studios.
The board said the industrial design of the building featured a steel-frame interior and a large central atrium.
Its second completion was Ink Rooms, a former printing ink factory in Clerkenwell, which had been converted and extended to provide 23,000 square feet of net lettable space comprising 37 offices and studios.
Workspace said it expected to complete another three refurbishment projects during the remainder of the current financial year, providing an additional 104,000 square feet of new and upgraded space.
Net debt was reduced by £6m in the quarter to £574m, the board reported, with cash balances and undrawn facilities of £134m as at 30 June.
The pro forma loan-to-value ratio as at period end, based on the 31 March property valuation, was 22%, in line with that reported a year ago.
Workspace also noted that on 31 May, Jamie Hopkins stepped down from his role as chief executive officer.
Graham Clemett, the company's chief financial officer, had assumed the role of interim CEO, with the formal search for a permanent successor said to be progressing “well”.
“It has been a busy and successful quarter for the company,” said interim CEO Graham Clemett.
“Our distinctive flexible offer continues to attract strong demand from a broad range of customers, despite the challenging economic environment.”
Clemett said the firm’s completed projects were letting up well, with the company progressing “at pace” with the delivery of its project pipeline.
“Alongside this we remain well positioned to take advantage of acquisition opportunities but remain rigorous on our return criteria.”