Workspace Reports Growing Customer Demand In June As Lockdown Eases

(Alliance News) - Workspace Group PLC on Thursday said customer demand continued to improve as clients are "slowly" returning to its business centres.

The FTSE 250-listed office & studio space provider reported 765 enquiries in June up from 272 in April and 480 in May. This compares to a monthly average of 1,060 enquiries in the first quarter of last year.

The company said it has to-date collected some 75% of rent due for the first quarter ended June 30. Cash collection in the second quarter, comprising quarterly rents and the monthly rents due for July, is currently at 65%. This compares to 80% at the equivalent time last year.

Workspace also noted that its customers are slowly returning to its business centres, with activity now at around 15% of "usual levels".

"Activity in the first quarter has been significantly impacted by the lockdown. We offered our business centre customers a 50% rent reduction for the first quarter ending in June, which was well received," said Chief Executive Graham Clemett.

"As our existing customers review their space requirements, we have seen like-for-like occupancy fall by 3% to 90% in the quarter and we expect to see continued pressure on occupancy levels in the short-term. However, we are encouraged by the early signs of a recovery in business confidence, with improving levels of enquiries, viewings and lettings," continued Clemett.

"We remain confident in the longer-term attractions of our flexible customer offer, despite the near-term challenges," added Clemett.

In June, Workspace opened two new business centres, Mare Street Studios in Hackney and Lock Studios in Bow. The company said it expects to complete another three projects during the remainder of the current financial year, providing a further 91,000 square feet of new and upgraded space.

Workspace shares were trading 0.2% lower in London on Thursday at 625.49 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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