Workspace Group has reported strong demand with 296 new lettings secured in the second quarter, despite a drop in occupancy over this time.
The flexible office space provider will gain £7.4m in annual rental income from these lettings. In total this year, the group has secured 603 new lettings with a total rental value of £15.8m.
At the same time, occupancy has waned slightly. In the second quarter, occupancy fell 0.7% to 87.5% with a “higher than usual level of larger customers” walking away.
“While this churn is higher than usual, it is part of the regular rhythm of our business,” said Graham Clemett, CEO at Workspace.
“Many of the larger units will be subdivided into smaller units where we see stronger demand and achieve higher pricing. We are encouraged by the improving leasing activity we have seen in September.”
Elsewhere, Workspace has made progress in disposing of non-core assets.
This included £29.9m in sales completed in the first half of the year, with a further £26.9m expected to exchange and complete in the second half.
Over the quarter, Workspace’s net debt increased by £28m to £856m following the payment for the full year dividend.
Workspace had £144m in cash on its balance sheet as of 30th September.
