14 June 2016
WORKSPACE GROUP PLC
BLACKROCK WORKSPACE PROPERTY TRUST
Workspace Group PLC ("Workspace"), home to new and growing companies across London, is pleased to announce the exchange of contracts for the disposal of the remaining seven properties in the BlackRock Workspace Property Trust ("BWPT") joint venture, in which Workspace has a 20% interest, for £118m, at a net initial yield of 4.7%.
The seven properties sold were Baden Place in London Bridge, Burford Road Business Centre in Stratford, City Road near Old Street, Europa Studios in Acton, Little London in Bermondsey, 6 Lloyds Avenue near Aldgate and Union Court in Clapham.
Together with the previous sale of Chandelier Building, Old Oak Common, for £13m, this completes the sale of all eight properties held by BWPT at 31 March 2016. The properties were sold for a total of £131m, in line with the valuation at 31 March 2016.
Following completion of these disposals, a performance fee will be payable by BWPT to Workspace based on the returns achieved over the five years of the joint venture. This fee is estimated to be £24m, in line with the amount recognised by Workspace in the accounts for the year ended 31 March 2016.
Jamie Hopkins, Chief Executive of Workspace, said:
"These disposals mark the conclusion of our hugely successful joint venture with BlackRock. We look forward to redeploying the capital we will receive as a result into our programme of refurbishments and acquisitions."
Paul Tebbit, Managing Director at BlackRock, added:
"We are very pleased to have achieved fantastic returns on this innovative investment strategy. Our relationship with Workspace throughout the last 5 years has been excellent. We have for some time been focusing efforts on the industrial sector and may also consider new sectors for future investment with the proceeds of the disposal."
ENDS
For media and investor enquiries, please contact:
Workspace Group PLC 020 7138 3300
Clare Dundas, Head of Corporate Communications
Bell Pottinger 020 3772 2562
Victoria Geoghegan
Nick Lambert
Elizabeth Snow
Notes to Editors
About Workspace Group PLC:
· Workspace is a FTSE250 property company and has been listed on the London Stock Exchange since 1993
· Workspace provides the right properties in the right locations to attract its customers and the right services to retain them and help them grow
· Workspace is growing through deep market knowledge, operational excellence and strong customer relationships
· For more information on Workspace, please visit www.workspace.co.uk
