Member Article

Flexible working boom sees Workspace rental income grow to £79m

Workspace Group, the provider of flexible workspaces in London, has seen continued positive growth in its rental income as the flexible and coworking boom continues to gather momentum in the capital.

Net rental income at the business, which is responsible for marquee office plots such as the Metal Box Factory in Southwark, was up by 6.2% for the year ended 31 March 2017, reaching £79.2m.

Total rent roll was also up at the firm over the period, rising by 14.5% to £89.5m fuelled by strong letting performance at its newly completed projects, as businesses of all sizes continued to clamour for office space on more flexible terms.

Despite pretax profit being slowly down at 2016 at £88.8m owning to a smaller increase in property values, Jamie Hopkins, Chief Executive Officer at Workspace, said that today’s figures show that the firm’s strategy is working and that it is well placed to capitalise on the changing market.

He commented: “This year, more than ever before, we have seen increasing evidence that our strategy is working. Demand, from all types of businesses across London, is firmly moving towards the highly designed and super connected space let on personalised and flexible terms that Workspace offers.

“Our ability to capture the opportunities in this changing marketplace is evidenced by our strong results, with rent roll growing strongly and trading profit increasing by 15% to over £50m. This performance has supported the Board’s decision to increase the dividend by 40%.”

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