Demand remains strong at Workspace

Office provider Workspace said demand for space remains strong with an increase in like for like rent roll in the quarter and the year to date as it continues with its programme of refurbishment and redevelopment.

LFL rent roll increased 1.4% in the quarter to £44.2m and rose 4.5% in the financial year to date. Total rent roll increased to £51m from £50.2m in March 2012.

LFL occupancy stood at 89.6%, up 0.8% in the quarter and up 1.9% in the year to date.

Its London property portfolio is now valued at £799m, an underlying increase of 1.5% in the quarter and 3.6% since March 2012.

Workspace said net initial yield is 7.1%, unchanged from March.

Chief Executive Officer Jamie Hopkins said: "It is encouraging that this strong level of customer demand has continued into the current calendar year. Our market knowledge and focused asset management strategy continues to drive momentum in the business and shareholder returns."

"Our total property valuation has also increased; benefiting from an improved operating performance alongside the uplift in value achieved from our on-going programme of refurbishment and redevelopment. Tailoring and upgrading our properties in order to attract our customers is proving successful and remains a priority."

Workspace said it saw good levels of enquiries and lettings in the quarter, despite the anticipated seasonal slowdown at Christmas.

Enquiries averaged 964 per month, compared to 892 per month in the same quarter last year.

CJ