Workspace has issued a statement confirming that it has converted to a Real Estate Investment Trust (REIT) following the 1 January 2007 deadline.
The flexible business accommodation provider gained shareholder approval for the change in status following an EGM on 15 December 2006.
Harry Platt, chief executive of Workspace, said: “I am delighted to report that we have now converted to a Real Estate Investment Trust.
“We are confident that this will improve our appeal among investors who want to invest in our specialist niche in the property sector.
“The group’s focus and strategy in developing its business will be unaffected by this change.
“However the tax efficient nature of a UK REIT will enable the Board to enhance the dividend payment in the future.”
The company paid a conversion charge of about £20m to the Treasury, which will wipe out its £140m of contingent capital gains tax liabilities.
In November, Workspace reported interim pretax profit on trading operations down from £6.3m to £5.1m. Turnover climbed from £29.2m to £29.6m.
References: EGi News 04/01/07
