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Workspace Group PLC

Workspace Group PLC. Managed Workspace – The Opportunities over the last decade and the outlook through the 21 st Century. Harry Platt Chief Executive 22 May 2006 BCA Annual Conference. Workspace Group PLC.

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Workspace Group PLC

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  1. Workspace Group PLC Managed Workspace – The Opportunities over the last decade and the outlook through the 21st Century Harry Platt Chief Executive 22 May 2006 BCA Annual Conference

  2. Workspace Group PLC Personal Review of development of flexible leasing and the targeting of space for SMEs Growth and development of sector in 1990’s to now – following experiences of Workspace Group Looking forward – key factors influencing the continued development of the sector

  3. The ’70s and ’80s • Isolated initiatives – not movement • Innovation in private and public sectors • Importance of individuals • The economic picture

  4. Individuals – the ‘Architect’ entrepreneurs David Rock/John Townsend

  5. Individuals – the ‘Architect’ entrepreneurs • Clerkenwell Workshops/Dryden Street/Canalot/ Woolwich Dockyard/etc • Mike Franks; Ted Potts; Nick Falk; Gillian Harwood; Bennie Gray; etc

  6. Private Sector • St Helens Enterprise Agency • B.I.T.C • London Enterprise Agency (LENTA) • B.A.T. • Local London

  7. Public Sector • Industrial Building Allowances (IBA’s) • Inner Urban Areas Act – and subsequent • Economic Development Officers • Development Agencies (Wigan) • Business Support

  8. UK Business Population • KEY FACTS • 1980-1990 Total Business Stock: 2.5m to 3.7m • Static through the 1990s, on the rise since 2001 • 2004 stands at 4.2m • 1.1m (26%) employ between 1-20 people • Only 87,000 businesses employ more than 20 people (Source: SBS Service, 2004)

  9. Late ’80s/Early ’90s • Changing economic background • Towards an entrepreneurial culture • Flexibility and SMEs

  10. UK Business Population(By size of firms with employees) (Source: SBS Service, 2004)

  11. The Economic Picture Churn • The SME sector: spread and risk • Starts and Exits: scale and churn • Most exits are successes • Do not confuse businesses with owners; serial and portfolio entrepreneurs

  12. Workspace Group:History: Growth in assets and shareholder value • Founded in 1987 • Listing on London Stock Exchange 1993 • Last equity issue 1994 • Now: Gross Assets over £950 million

  13. Our Business • “ We provide affordable, flexible space for new and small businesses in London and the South East ” • c.4,000 customers over some 100 estates; nearly 6 million sq .ft • Over 8,000 enquiries a year; market leading brand in • fragmented market • A simple product offer • Superior service from in-house management • Customer focused

  14. Workspace Group portfolio 2005/06

  15. Creating a commercial proposition: affordability as well as flexibility Typical Workspace tenant: Rent under 5% of turnover Source: Kingston University survey of over 200 customers. Spring 2004

  16. Total Percentage of Customers by DTI Categories

  17. Our Customers

  18. Workspace Group PLC: A Property Based Business Workspace Approach Workspace Group PLC Tenants Customers Large Businesses – ‘Good Covenants’ Small Businesses Prime Properties So-called ‘secondary’ stock Long Term Leases Short term flexible leases Marginal Rents Average rents Asset Collectors or Creators Business

  19. Where are we now? • SMEs • Flexibility • Producers/Consumers/Customers • Economic efficiency: property ownership

  20. Looking forward – Key factors influencing the continued development of the sector • Continued growth of SME sector and recognition of benefits of flexible leasing in larger organisations • Economic driver: Demand • UK economy and its population demographics

  21. Looking forward – Key factors influencing the continued development of the sector • The direct services and profit contributions • Bureau, telecoms, conferencing, insurance etc • Added value and margin contributions: will it be eroded further?

  22. Looking forward – Key factors influencing the continued development of the sector • The indirect services: here to help you grow, a service not a “just a space” • Communities: centres/between centres tradelink

  23. Marketing

  24. Homepage Searchable, up-to-date, tenant directory Calendar ofevents fromWSG & beyond Message boards for customer interaction Press from andabout tenants(e.g. Awards)

  25. Looking forward – Key factors influencing the continued development of the sector • The sustainability agenda • Our Buildings • Our Customers • Our Suppliers

  26. The Property Case: The Third Dimension, long term sustainability Source: Upstream Strategies

  27. Working Together • Landlords • Customers • Suppliers • Communities – like the BCA! PLC

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