Workspace to raise £63m

7th Jul 2011 12:53

Business space provider, Workspace, has announced it is to raise £63m through a rights issue.The firm said the fully underwritten rights issue would give it the resources it needed to invest in its existing portfolio and give it a war chest to go hunting for new properties.New shares will be issued on the basis of one new ordinary share for every four existing ordinary shares at a price of 23 pence per share.This represents a discount of 20% to the closing mid market price of 29p on 6 July 2011.BESI and Investec are joint underwriters for the rights issue.Workspace also released an interim management statement for the three months ending 30 June 2011.The company said total occupancy of its offices was up 0.4% in the quarter to 84%, with like-for-like occupancy stable at 86%.It added that its underlying property valuation at 15 June 2011 was up 1.3% (£9m) to £727m.Harry Platt, chief executive of Workspace, said the business was performing well with good demand for space from its SME customer base across London."The rights issue will enable us to take advantage of attractive re-positioning and acquisition opportunities that should deliver income and capital growth enhancing returns to our shareholders," he said.