Workspace has slowed the sale of its non-core assets as the economic picture worsens.
In a Q2 trading update this morning, chief executive Graham Clemett said: “We are making progress on the sale of non-core assets, although it is likely to take longer than we originally envisaged given market conditions.”
Workspace planned to complete the sale programme by December, after buying McKay in May for £272m.
While the deal handed Workspace a slew of London office assets, it also included a scattering of non-core properties and a light industrial portfolio focused on the South East.
Clemett said: “The integration of our McKay acquisition is largely complete and performing ahead of our original expectations,” but sales of further assets would not be rushed “as we remain focused on maximising value from these quality assets”.
Workspace said occupancy had remained stable at 89.6%, while like-for-like rents had edged up 1.3% to £38.59 per sq ft, delivering a £94.5m rent roll.
Net debt as at 30 September 2022 was £937m, an increase of £28m in the quarter, with LTV at 32%.
Clemett added that, although “there are clearly challenges ahead in light of the wider economic issues and inflationary cost pressures facing the country”, he was confident that the business would “navigate successfully through them”.
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