Workspace leasing levels impress in Q1

16th Jul 2014 11:47

- LFL rents up 14.9 year-on-year- LFL occupancy up 0.6% in quarter- Footprint increasing across London Rents and occupancy levels were up strongly at London office space provider Workspace in the first quarter.Total rent roll of £61m was a 4.6% rise on the previous the quarter and 14.9% higher than the same period last year.Similarly, like-for-like rents were up 3.3% in the quarter to £41.1m and up by 10.8% year-on-year.Like-for-like occupancy rose 0.6% to 90.6% in the quarter with rent per sq.ft up 2.5% in the quarter to £14.96.Chief Executive Jamie Hopkins said: "This has been a good start to the financial year with strong demand for our tailored space driving growth in pricing and rent roll. Our focused asset management and clear understanding of our customers' requirements continues to deliver value for shareholders."Workspace acquired Vestry Street Studios in Shoreditch and a property in Greville Street, Farringdon during the quarter for £14.9m and secured planning permission secured for the second phase of the mixed use redevelopment at The Filaments, in Wandsworth in south west London. It also entered into agreements with residential developers for the mixed use redevelopments at The Faircharm in Deptford the second phase at Bow Enterprise Park. "We have increased our footprint across London, launching new buildings in areas attractive to our customers," added Hopkins, point to new hubs in Islington and Bethnal Green. "We continue to explore refurbishment and redevelopment options throughout the portfolio as well as making selective property acquisitions in the right locations where we can offer the services and facilities that suit our customers' needs."Broker Liberum hailed it as "another great leasing performance", with newly developed space continuing to be let at rents well above estimated rental value, while future redevelopments are also making progress. "We remain comfortable with our forecast for 59% NAV [net asset value] growth in the three years to March 2017, the highest in our UK REIT [real estate investment trust] coverage."Shares in Workspace were up 2.62% to 606p by 12:45 on Wednesday. OH