Workspace Group PLC

1. Workspace Group PLC Harry PlattChief Executive, Workspace Group PLCPresentation to London Business School: Real Estate ClubTuesday 17 April 2007

2. Workspace Group PLC Performance and History Our Business Workspace as a REIT Added Value: Relation to London Plan

3. History • Established 1987 • Joined London Stock Exchange 1993 • Geographical focus • Scale

4. Ten Year Results to 31 March 2006 Five Year Ten Year Compound Growth Compound Growth Adjusted NAV per share 20.9% 21.9% Property at Valuation 21.3% 22.6% Trading PBT 9.9% 13.8% Trading EPS 10.2% 13.0% Dividend per share 10.2% 11.2%

5. Total Shareholder Return

6. 5 Year Share Price

7. 30.00% 25.00% 20.00% Percentage Return 15.00% 10.00% Workspace 5.00% IPD Workspace vs Universe 0.00% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 IPD Performance

8. The Business – Hotelier of Space to SMEs • To achieve profit and capital growth from: • Providing workspace to SMEs in London • Investing in properties with potential • - Income growth • - Capital growth • - Alternative use • Increasing scale of portfolio, spreading overheads and • developing the brand • The right financial platform

9. The Business – Hotelier of Space to SMEs • “ We provide affordable, flexible space for new and small businesses in London and the South East ” • c.4,300 customers over 113 estates; 6.0 million sq .ft • Over 9,900 enquiries a year; market leading brand in • fragmented market • A simple product offer • Superior service from in-house management • Customer focused

10. Workspace Portfolio 2006

11. Rents, Affordability: Customer Profile Typical Workspace tenant*: • Rent under 5% of turnover • Average customer in 1,000 sq. ft paying £200 (approx) rent per week *Source: Kingston University survey of over 200 customers. Spring 2004

12. Workspace Customer Base Classification based on DTI categories

13. Our Buildings The Leathermarket Westminster Business Square

14. Our Buildings Westbourne - external Westbourne – Internal

15. Clerkenwell Workshops

16. Kennington

17. 10 1. Kennington Park Studios, SW9 2. Westminster Business Square, SE11 3. Southbank House, SE1 4. Linton House, SE1 5. Great Guildford Business Centre, SE1 6. The Leathermarket, SE1 7. Enterprise Estate, SE1 8. Hatfield House, SE1 9. Tower Bridge Business Centre, SE16 10. Langdale House Business Centre, SE1 Scale = 1:25000 9 Southbank Portfolio

18. Communities of Customers • On individual sites • Between sites • Tradelink

27. Workspace as a REIT • Comfortably pass tests (ownership, property, trade mix interest cover etc). • Eliminate £140m deferred tax (80 pence per share) • £20m entry cost – short payback • Earnings (dividend) enhancing • Strategic plan maintained • May create acquisition opportunities

28. About London • along with New York and Tokyo, is a world city • most multicultural in the world, home to more than 300 languages • 12.5% of UK population, responsible for 16.5% of its output • highest number of business starts and closures in the UK • highest concentration of fastest-growing, most productive business • sectors LONDON IS OUR MARKETPLACE

29. London Population Projections Source: DMAG Briefing 2005/40

30. Accounting for Growth “International migration is now the dominant driver of population changein the UK and is set to remain so for at least the next 25 years.” Source: LDA - Estimating London’s new migrant population, Sept 2006

31. LDA Priority Areas for Investment • 60% of Workspace stock falls within these areas • Workspace is well placed to benefit from – and contribute to – the future investment within these areas.

32. LDA Priority Areas for Investment • WHARF ROAD, HACKNEY (N1) • Replacing existing units with: - 30,000 sq ft of commercial space - 77 residential units

33. LDA Areas For Intensification • During 2005: • 100% of development took place on previously developed commercial space

34. LDA Areas For Intensification • THURSTON ROAD, LEWISHAM (SE13) • Part of the regeneration of Lewisham Town Centre • Conversion of industrial estate into mixed-use development: 91,000 sq ft non-food retail 16,500 sq ft commercial space 271 residential apartments

35. LDA Areas of Deprivation Insert map • In deprived wards, regeneration • opportunities are greatest, through: • spatial, social, economic policies & planning • stimulating business ownership

36. LDA Areas of Deprivation • N17 STUDIOS, HARINGEY • situated in one of the most deprived areas of London • originally 50 large floor-plate units • now more than 90 units, 80% of which less than 1,000 sq ft

37. PTAL Map PTAL ratings assess publictransport accessibility30% of WSG properties have arating of 5 or higher

38. Workspace Portfolio: Current Low density; low capital value; in areas of change 25% subject to intensification/change of use over 5 years A further 20% subject to intensification/change of use over 10 years Stock continually replenished – the acquisition database

39. Workspace Portfolio: What density increases achievable? Wharf Road 2x Thurston Road 6x Aberdeen 2x Grand Union 5x Wandsworth 2x (+) Bow 6x (+) Whitechapel 3.5x (+)

40. Workspace Portfolio: What mix of uses? • Replacement of workspace – new for old • Residential main other element • Workspace to be treated as equivalent to affordable housing (?) • Other uses

41. Transport Improvements in London