Business accommodation provider Workspace (WKP) rises 2.4% to 605p on a strong start to its current financial year and a buoyant development pipeline.
The London-focused provider of flexible office and studio space saw rents rise 4.6% to £2.7 million in the three months to July, despite occupancy improving only 0.6%.
The growth catalyst was rent increases of 2.5% for the real estate investment trust’s newly developed space, an area Workspace continues to focus to drive further growth.
It secured planning permission for the second phase of a mixed use re-development in Wandsworth and has entered into projects for other developments.
Broker Liberum remains bullish on the company's prospects, expecting 8% rental value growth this year. ‘We remain comfortable with our forecast for 59% net asset value growth in the three years to March 2017, the highest in our UK REIT coverage,’ it says.
The FTSE 250 company manages some 100 properties in the capital, covering 5.1 million square feet and housing 4,000-plus companies.
