Workspace Group Sheds Assets in Portfolio Optimization Drive

Workspace Group PLC (LON: WKP), a key player in London's flexible workspace market, has announced the disposal of two properties, Morie Street and Castle Lane, for a combined £22.4 million.

The sales align with the company's “Fix, Accelerate and Scale” strategy, specifically focusing on a conviction-led portfolio management approach.

The aggregate sale price represents a 3% discount to the March 2025 valuation, reflecting a net initial yield of 4.3%. Morie Street, located in Wandsworth, offers 22,000 sq. ft. of office and studio space. Castle Lane, in Victoria, is a 14,000 sq. ft. office building.

These properties were deemed “low conviction buildings” following a portfolio review. Workspace Group intends to recycle capital from these smaller, non-core locations into assets with greater potential for value creation. The focus is on enhancing the experience for their SME customers.

Lawrence Hutchings, Chief Executive Officer of Workspace, stated, “We are making good progress in delivering our strategy to fix, accelerate and scale the business and our new conviction approach to portfolio management is a key part of our plan.

“These disposals are consistent with our disciplined approach to recycling capital out of smaller, non-core locations and into our conviction buildings where we can really add value to our creative and innovative SME customers and, in turn, maximise value for our shareholders.”