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Workspace Group PLC

Workspace Group PLC . Harry Platt Chief Executive Presentation for Bridgewell Investor Conference: “Growth and Returns from Bricks & Mortar” February 6 th , 2007. Workspace Group PLC . Workspace: Performance and History Workspace: Our Business Workspace: Relation to London Plan. History.

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Workspace Group PLC

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  1. Workspace Group PLC Harry PlattChief ExecutivePresentation for Bridgewell Investor Conference:“Growth and Returns from Bricks & Mortar”February 6th, 2007

  2. Workspace Group PLC Workspace: Performance and HistoryWorkspace: Our BusinessWorkspace: Relation to London Plan

  3. History • Established 1987 • Joined London Stock Exchange 1993 • Geographical focus • Scale

  4. Ten Year Results to 31 March 2006 Five Year Ten Year Compound Growth Compound Growth Adjusted NAV per share 20.9% 21.9% Property at Valuation 21.3% 22.6% Trading PBT 9.9% 13.8% Trading EPS 10.2% 13.0% Dividend per share 10.2% 11.2%

  5. 30.00% 25.00% 20.00% Percentage Return 15.00% 10.00% Workspace 5.00% IPD Workspace vs Universe 0.00% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 IPD Performance

  6. The Business – Hotelier of Space to SMEs • To achieve profit and capital growth from: • Providing workspace to SMEs in London • Investing in properties with potential • - Income growth • - Capital growth • - Alternative use • Increasing scale of portfolio, spreading overheads and • developing the brand • The right financial platform

  7. The Business – Hotelier of Space to SMEs • “ We provide affordable, flexible space for new and small businesses in London and the South East ” • c.4,300 customers over 113 estates; 6.0 million sq .ft • Over 9,900 enquiries a year; market leading brand in • fragmented market • A simple product offer • Superior service from in-house management • Customer focused

  8. Workspace Portfolio 2006

  9. Rents, Affordability: Customer Profile Typical Workspace tenant*: • Rent under 5% of turnover • Average customer in 1,000 sq. ft paying £200 (approx) rent per week *Source: Kingston University survey of over 200 customers. Spring 2004

  10. Workspace Customer Base Classification based on DTI categories

  11. About London • along with New York and Tokyo, is a world city • most multicultural in the world, home to more than 300 languages • 12.5% of UK population, responsible for 16.5% of its output • highest number of business starts and closures in the UK • highest concentration of fastest-growing, most productive business • sectors LONDON IS OUR MARKETPLACE

  12. London Population Projections Source: DMAG Briefing 2005/40

  13. Accounting for Growth “International migration is now the dominant driver of population changein the UK and is set to remain so for at least the next 25 years.” Source: LDA - Estimating London’s new migrant population, Sept 2006

  14. LDA Priority Areas for Investment • 60% of Workspace stock falls within these areas • Workspace is well placed to benefit from – and contribute to – the future investment within these areas.

  15. LDA Priority Areas for Investment • WHARF ROAD, HACKNEY (N1) • Replacing existing units with: - 30,000 sq ft of commercial space - 77 residential units

  16. LDA Areas For Intensification • During 2005: • 100% of development took place on previously developed commercial space

  17. LDA Areas For Intensification • THURSTON ROAD, LEWISHAM (SE13) • Part of the regeneration of Lewisham Town Centre • Conversion of industrial estate into mixed-use development: 91,000 sq ft non-food retail 16,500 sq ft commercial space 271 residential apartments

  18. LDA Areas of Deprivation Insert map • In deprived wards, regeneration • opportunities are greatest, through: • spatial, social, economic policies & planning • stimulating business ownership

  19. LDA Areas of Deprivation • N17 STUDIOS, HARINGEY • situated in one of the most deprived areas of London • originally 50 large floor-plate units • now more than 90 units, 80% of which less than 1,000 sq ft

  20. PTAL Map PTAL ratings assess publictransport accessibility30% of WSG properties have arating of 5 or higher

  21. Workspace Portfolio: Current Low density; low capital value; in areas of change 25% subject to intensification/change of use over 5 years A further 20% subject to intensification/change of use over 10 years Stock continually replenished – the acquisition database

  22. Workspace Portfolio: What density increases achievable? Wharf Road 2x Thurston Road 6x Aberdeen 2x Grand Union 5x Wandsworth 2x (+) Bow 6x (+) Whitechapel 3.5x (+)

  23. Workspace Portfolio: What mix of uses? • Replacement of workspace – new for old • Residential main other element • Workspace to be treated as equivalent to affordable housing (?) • Other uses

  24. Transport Improvements in London

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