1 workspace group plc presentation to london first on friday 30 june 2006 james friedenthal,...

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Workspace Group PLC

Presentation to London FirstOn Friday 30 June 2006

James Friedenthal, Commercial Manager

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Workspace Group PLC

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

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Workspace Group PLC

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July 1987 Founded for industrial portfolio

Buy out from GLC Residuary Body

17 properties acquired

Initial £16.7m raised (equity & debt)

Dec 1993 Listing on LSE (£13.9m placement)

July 1999 Major portfolio acquisition £80m – financed by debt

Now Portfolio value: £964m

105 properties, FTSE 250

Workspace History

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• Flexible, affordable, workspace to let throughout London

• We are London’s leading space provider to SMEs

• We own and manage over 100 business centres in London with 4,000 customers

• We buy estates and extract value by refurbishing, re-using or extending

• A core value is to be the first point of contact

• We are customer focused throughout and consider sustainability of high importance

Our Business

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London, our marketplace

London is a global city

London is a growing city

Centre of finance – commerce – culture – knowledge – creativity – power and

influence

London’s population likely to grow by

800,000 to 8.1m by 2016

The working population will rise by 516,000

Net internal migration continues to run at

about 100,000 a year

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London, our marketplace

London is theSME incubator

1.07m employ 1 - 20 people

30% of these are in London and SE

85% of those businesses with employees in London have less than 10 employees

In 2005, London accounted for 22% (87k) of all new business starts in the England and

Wales

London has the highest concentration of the fastest-growing and most productive

business sectors in the UK

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• Flexible

• Affordable

• Work space

• To let through out London

Our Core Product

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Flexible, affordable, workspace

• Short flexible lease

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Flexible, affordable, workspace

• Large properties offering small space• Provide affordable space in accessible locations

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Flexible, affordable,workspace

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Kennington Park, SW9

Light Industrial

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Parma House, N22

Workshops

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Europa Studios, NW10

Studios

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The Leathermarket, SE1

Offices

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Serviced Offices

Southbank House, SE1

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Often Properties of Character

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New Development

Clerkenwell Workshops, EC1

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Customer Profile

Median % of median

turnover Year of start 1996 —

Turnover £250,000 —

Overheads £90,000 36

Profits £40,000 16

Rent £12,000 4.8

Typical Workspace tenant*:

Rent under 5% of turnover

Average rents at 31 March 2006: £9.58 per sq. ft

Average customer in say 1,100 sq.ft.

Average rent per week £203

*Source: Kingston University survey of over 200 customers. Spring 2004

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Customer Profile

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Customer Profile

DTI Classification of Tenants

12% 1%

2%

1%

6%

18%

45%

10%

5%

Manufacture

Retail

Cons truction

Utilities /Infras tructure

Organisations

Des ign & Creative

Services

Storage & Dis tribution

Unclass ified

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• Holistic customer focus• Deal direct with prospect to customer• 90% + customer satisfaction

Customer Service

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Workspace Group PLC summary

• Flexible, affordable, workspace to let throughout London

• Leaders in a growing marketplace

• Focused on long term sustainable growth