(Alliance News) - Workspace Group PLC on Thursday said its rent roll and occupancy levels have been climbing steadily, as September saw London come "back to life".
In a trading update, the London-based flexible office space provider said its like-for-like rent roll was up 2.1% in the recent six months to GBP87.3 million on September 30. Rent roll was GBP84.6 million on June 30 and GBP85.5 million on March 31.
Pricing stabilised at a like-for-like average rent per square foot of GBP35.50 in the second quarter ended September 30, up 0.3% from GBP35.41 in the first quarter to June 30.
In addition, cash collection remained strong despite UK government restrictions on rent collection measures. Workspace said it has so far collected 97% of rent due for the second quarter, ahead of rent collected at the same point in the previous quarter.
"It's great to see London coming back to life, and our latest utilisation and occupancy figures show that London's [small and medium enterprises] are leading the way back to the office and are optimistic about the future," said Chief Executive Graham Clemett.
"These are positive signs of momentum and further proof that our truly flexible offering is resonating in the evolving working world."
The trading update accounts for the first Monday of September, which Transport for London reported as the ​​busiest rush hour on the Tube since the first national lockdown.
Workspace added that its customer demand improved through the period. September had a particular pick-up in activity, with an average of 935 enquiries and 138 lettings per month in the period.
The FTSE 250 constituent also refreshed its portfolio in the second quarter, refurbishing its Pall Mall Deposit business centre in West London, opening business centre Mirror Works in Stratford, selling 3-17 Fitzroy Street in Fitzrovia for GBP92 million, and acquiring The Old Dairy in Shoreditch for GBP43.4 million.
Shares in Workspace were up 1.9% at 813.50 pence in London on Thursday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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Workspace (WKP)