Sign up Australia
Proactive Investors - Run By Investors For Investors

Workspace Group to tap market to fund growth

The London-focused office space provider said like-for-like occupancy in the fiscal year just ended rose to 91.6%, up 0.8% in the year, and rent per square foot was up 7.6% to £35.50.
Office space
The company said enquiries are averaging 1,016 per month

Workspace Group plc (LON:WKP), the office space specialist, is proposing to raise funds through a placing of 16.32mln shares.

The newly issued shares will represent around 10% of the current issued share capital of the company. Workspace's shares fell 17p to 1,148p following the news.

READ: Workspace Group to raise £200mln to fund expansion

Proceeds from the placing will be used to finance capital expenditure on the project pipeline and acquire new properties in London.

The fund-raising comes after the company five of the Centro Buildings in Camden for £109mln in February and increased its footprint in Camden in April with the acquisition of various properties for £76.5mln.

“We have an exciting pipeline of ongoing projects and acquisition opportunities and this fund-raise will enable us to continue to invest in assets that we believe will drive rental income growth and capital value uplift, as well as finance the recent acquisitions of the Centro Buildings in Camden,” said Jamie Hopkins, the chief executive officer of Workspace.

“With continued strong demand for our product, London remains the ideal market for Workspace and we believe we are well positioned to continue to take advantage of opportunities to meet that demand and generate superior value for shareholders," he added.

The announcement was made alongside the release of the group's full-year results for the year to the end of March that showed a near doubling of profit before tax to £170.4mln from £88.8mln the year before.

Net rental income rose 21% to £95.6mln while the EPRA (European Public Real Estate) net asset value at the end of March had risen 8.8% from a year earlier to £10.37.

"These strong results are further evidence of management successfully executing the right strategy. Flexible working continues to gain significant attention and our well-connected, inspiring spaces are driving strong customer demand. Our continued rental growth over the year reflects the resilient demand for the right type of space in London,” Hopkins said.

“This very positive trading performance and confident outlook underpins the board's decision to increase the total dividend by 30%,” he added.

The board has recommended a final dividend of 18.55p, up from 14.27p the year before, raising the full-year pay-out to 27.39p from 21.07p the previous year.  

View full WKP profile View Profile

Workspace Group plc Timeline

Related Articles

Belvoir
September 13 2018
At 61,000 properties under its management, Belvoir is the UK’s second largest lettings agent
Old person
October 04 2018
The value of its investment portfolio rose by 9% in the year to March
industrial property warehouse
June 12 2018
Custodian’s portfolio is weighted towards industrial sector and split between industrial, retail, office and other properties

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use