Workspace to rebuild Docklands business park - UPDATE

25th Sep 2013 07:33

Workspace Group, the FTSE 250 business premises provider, has secured planning permission to redevelop its Canary Wharf business park. The group will replace existing light industrial space at its Poplar Business Park with a mix of business centre, apartment accommodation and some new light industrial.Chief Executive Officer Jamie Hopkins said: "It is a significant redevelopment in an area that will be experiencing a lot of change over the coming years with the arrival of Crossrail at Canary Wharf." He added: "The redevelopment will also provide a significant boost to both the capital value and rental income of the site and demonstrates our ability to add significant value through asset management."The site was valued at March 31st at £21m.The planning permission has allowed space for 392 apartments, 20% of which will be affordable, alongside a new 58,000 sq ft business centre and 12,000 sq ft of light industrial workshops. Workspace said the scheme has provision for two new public squares and improved transport links from Poplar High Street to Canary Wharf and Wood Wharf. Hopkins added that the park, once redeveloped, will be "a thriving residential and business location in the heart of one of London's future hotspots".Analyst Mark Hughes at broker Panmure Gordon said: "This is excellent news and further proves the company's ability to create value through asset management."He said the news demonstrated one of Workspace's core skills. "In our opinion, this is a significant redevelopment which should provide a significant boost to rental and capital values for Workspace."Hughes noted that the stock traded on a premium to net asset value (NAV) at present but his target price of 460p was set in line with 2016 forecasts. OH