Metal Box Factory

Metal Box Factory

Workspace raises £200m to fuel its ambitious expansion plans

Flexible workspace provider Workspace has raised £200m as it looks to capitalise on changing working habits.

The £200m funding package has been secured from a private placement which included NatWest Markets, Santander and HSBC among others.

It follows a £100m five-year revolver facility the company raised last month and will be used to fund the group’s investment plans.

On a proforma basis, based on the drawn debt at 30 June, the group’s weighted average interest rate following completion of the private placement would be approximately 4.3% (Year to 31 March: 5.2%), with £229m of cash and undrawn facilities at a marginal interest rate of 1.8%.

Graham Clemett, chief financial officer of Workspace, said: “We are delighted with investor appetite for this private placement issue, a strong endorsement of the group’s business strategy and investment plans.”

The news tops off what has already been a stellar start to the year for the group - as Workspace saw customer demand remain strong during the first quarter of the year with enquiries averaging 1,055 per month between 30 April and 30 June.

The company also completed two significant acquisitions during the quarter in Fitzrovia, W1 and Moorgate, EC2, adding 333,000 sq ft of lettable space to its offering at a total cost of £257m.

Established in 1987, and listed on the London Stock Exchange since 1993, Workspace now owns and manages more than 3.7 million sq ft of business space across its 69 London properties.

It is also home to over 4,000 businesses including some of London’s fastest growing and established brands across a wide range of sectors.