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Real Estate

Workspace Group to raise £200mln to fund expansion

It is issuing eight and ten year loan notes with eight UK and US institutional investors, including four new lenders to the group

Workspace Group PLC (LON:WKP), the office space specialist, which manages 69 offices in London, is to raise £200mln in a placing to fund expansion.

It is issuing eight and ten year loan notes with eight UK and US institutional investors, including four new lenders to the group.

The debt has a fixed rate coupon of 3.145 and average maturity of 9.2 years.

This placing as well as the additional £100mln five-year revolver facility provided by its bank lending syndicate last month will increase the group's debt facilities to £665mln.

Graham Clemett, Workspace's finance chief, said: "We are delighted with investor appetite for this private placement issue, a strong endorsement of the group's business strategy and investment plans.

"The new notes will enable us to capitalise on current low interest rates, secure longer term funding for the group at a low cost, and put us in a strong liquidity position."

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