Workspace Group has claimed a “fantastic end to a year of strong recovery” as it moves ahead with plans to buy McKay Securities.
In a trading update for the flex provider’s fourth quarter, Workspace said it had received irrevocable undertakings and a letter of intent in respect of 37% of McKay’s issued share capital as of 28 March.
Workspace announced its recommended offer to acquire the REIT for £272m, or 297p per share, on 2 March. A meeting of McKay shareholders is due to be held on 27 April.
Chief executive Graham Clemett said: “We are confident that we are well positioned for further sustainable growth and see the recommended offer for McKay Securities as an opportunity to accelerate these growth plans and generate strong returns over the medium term.”
There has been no update on a potential rival, all-cash bid for McKay, which is being touted by Canadian investor Slate Asset Management. Slate has requested access to due diligence with an eye to making a possible bid.
Workspace said it had increased lettings to 127 a month, up from last year’s 111, while enquiries had risen from an average of 910 to 957 over the same period. Occupancy was also up, by 3% over the quarter, to 89.6% – a 7.8% rise over the year. Like-for-like rents rose by 1.3% during the quarter to £36.39m. Its rent roll increased by 4% on a like-for-like basis to £92.9m, with the total rent roll up 3.5% to £111m.
Clemett added: “This is a fantastic end to a year of strong recovery, and we are going into the new financial year with positive momentum across all key indicators.
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