Workspace Share Discussion Threads

[suetballs] 09/9/2020 10:28

Thanks shield - a more complete picture in terms of numbers.
So only 8% of all units not let.
Ok doesn't seem too bad - but what about slow payers / bad debt, size of units not let and the rents that are being charged.
Surely the current share price must reflect the foregoing.

Suet

[shieldbug] 09/9/2020 09:38

Looks like 323 units available when I looked earlier this morning.

19th August Elsa7878 found 368 units available (including 73 in new properties). So 12% reduction in available units over 3 weeks.

Annual Report states there were 4009 lettable units as of 31st March 2020. This was down by 960 lettable units from Sept 2019 - which in retrospect looks good - with a couple of properties sold in the H2 2019.

[suetballs] 07/9/2020 11:53

What is the total number of units?
Or where do I find the info please.
Suet

[elsa7878] 07/9/2020 10:53

Units available now 326.

[suetballs] 04/9/2020 07:32

18 - encouraging.
Suet

[18bt] 04/9/2020 06:40

Pleaasantly surprised on my first visit into London yesterday. It wasn't humming, but tube carriages seemed 40% occupied mid-monring and there were even people walking around the City. In the office I went into, they have plans to double the number of people going into the office - having got people in in July, they have practical experience of how to achieve social distancing and can relax some of their more strict interpreations of Govt Guidelines - all with staff support.

[its the oxman] 03/9/2020 14:38

The worst is being assumed at the moment, time will tell.

[slicethepie] 03/9/2020 10:34

Apparently in periods of economic slowdown and redundancies you see an increase in self employed / small business formation as people set up on their own ...this could help.

[hawaly] 31/8/2020 11:46

Of course no one knows the future but....

Look - surely it's basic supply and demand.

Supply going up demand going down - is this an area of the market thats going to appreciate?

As for the placing - that was in 2018 - so much has changed - not least the share price which is almiost 50% down since then.

Current sentiment isn't good either

"Coronavirus: reluctant office staff defy government call to commute
Back-to-work push by ministers is stalling"



GLA
😎

[suetballs] 31/8/2020 07:07

Capita to close over a third of offices permanently.
How many of these are in London? Others will do likewise. How will it affect rents?
How many others will copy the wkp formula?
At under £6 wkp should be a bargain but times are changing.
Suet

[its the oxman] 28/8/2020 21:50

Given their last fund raise was at 1100p today's price seems something of a bargain and I'm thinking London locations will remain the place to be.

[slicethepie] 28/8/2020 09:25

Land secs starts at 15 people min! I think workspace know this space extremely well having been the leading operator for over 20 years. Reputation and word of mouth are really important as their units tend to attract related companies ie media

[williamcooper104] 28/8/2020 09:05

Both Land Secs and BL have introduced flexible office offerings

[slicethepie] 28/8/2020 08:12

Agree 100%, they also have a brand name and reputation which is important for small businesses. There is also a barrier to entry as it is not simple to carve up big floor space into small units. The resilience of these small businesses is well documented and arguably you see more formed in tough times.

[williamcooper104] 28/8/2020 03:46

Workspace have pushed rents from low teens in 2013-14 to c£43 psf At a tenner a foot - c£120-180 psf capital value alternative uses work £43 psf however is around £700-800 psf - which kills alternative uses in most areas Will still be development opportunities where extra space can be added But absent this the alternative use floor (assuming resi) is going to be £150-£300 psf (assuming c30 percent on resi values of £500-900psf)

[essentialinvestor] 27/8/2020 23:30

shield, appreciate the view, many thanks. Will have a look in more detail.

[hawaly] 27/8/2020 19:01

Don't you think that "one or two" things have changed since February?

[shieldbug] 27/8/2020 17:44

Essential - They say that "Freehold property ownership" is part of their strategy.

I am in London and bought a bit of WKP in recent months. I often walk past various properties and I can confirm there is only limited activity. WeWork is even quieter than Workspace, almost no one working in these places at all.

Many Workspace properties are well located, many are older industrial buildings and some have character. A great many of these kinds of properties have been and are in the process of being converted to residential.

Some of my reasoning for buying WKP:

1/ tenants are likely to be more established companies than WeWork type tenants and perhaps more resilient to economic stress.
2/ often these are companies that actually need a contained space - rather than a shared hive.
3/ Many of the properties have some car parking/loading facilities that are simply not available in new buildings occupied by WeWork type spaces.
4/ not being new buildings the rent is almost certainly going to be lower and so likely to retain tenants
5/ there is a shortage of this kind of office/studio/workshop space in London - (this is from experience, I have a small business and have twice needed to find space)
6/ freehold properties with huge potential for redevelopment.

Despite all of this - not much sign of my being right at this point.

[essentialinvestor] 26/8/2020 23:24

Does Workspace own all their own property, are there lease liabilities?.

For example IWG has low net debt, however also appears to have significant lease liabilities.

[slicethepie] 20/8/2020 08:02

That's why the share price is down from £13. Unless all central London prop is going to fall 50% plus then the maybe approaching a good long term entry point. Most of their sites have alternative use and development potential.

[hawaly] 20/8/2020 07:38

Assets like this are being repriced ... the slide rule is in flux.

[slicethepie] 20/8/2020 07:18

Ok I will rephrase....you are crudely buying central London property on a discount of 50%, a prospective yield of 5% and in a liquid form. They may need to offer short term discounts to fill empty space but this is the cheapest space in central London already.

[emso] 19/8/2020 18:00

pieman. No you are not - the business is reliant on buildings being occupied and rents being paid - the whole premise of workspace is flexibility of occupation - so go figure where that leaves them as a LL.