Workspace reveals strong start to fiscal year

Workspace Group reported strong demand in the first quarter to 30 June 2017, with enquiries for office space averaging 1,055 per month.

In comparison, in the first quarter last year, there were 1,060 enquiries. However, lettings fell to an average of 95 per month in the first quarter of 2017-18, from 99 per month in the same period last year.

The business revealed a significant increase in debt financing of £194m to £436m in the first quarter, mainly as a result of its £158.7m acquisition of Salisbury House in the City of London and 13-17 Fitzroy Street, Fitzrovia, for £98.5m.

As a result, Workspace’s LTV rose to 21% based on 31 March 2017’s property valuation, compared to 13% at the same time the year before.

During the quarter, an additional £100m five-year revolver facility was provided by the company’s bank lending syndicate under the existing overarching agreement, along with a new £50m 364-day revolver facility.

At 30 June 2017, cash balances and undrawn facilities totalled £79m.

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Jamie Hopkins, chief executive officer at Workspace, said:  “Workspace has had a very busy and successful start to the new financial year with robust demand from customers confirming the attractiveness of our flexible offer to an increasingly wide range of businesses. We have continued to expand and upgrade our property portfolio with two exciting acquisitions and the opening of a new business centre in the quarter.”

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