How we generate
value
Understanding work space
The following case studies demonstrate how we are able to enhance both core operational income and capital values as well as provide our customers with properties and services that help their businesses grow.
Case studies
Driving Rental Growth
Parkhall Business Centre,
Dulwich, SE21
Understanding our Customers
Club Workspace,
The Leathermarket, SE1
Repositioning
Exmouth House,
Clerkenwell, EC1
Corporate Social Responsibility
Chester House,
Kennington Park, SW9
Redevelopment
Highbury Grove,
Islington, N5
Planning Gain
Greenheath Business Centre, Bethnal Green, E2
Acquisition
Chandelier Building,
Willesden, NW10
PARKHALL BUSINESS CENTRE,
DULWICH, SE21
DRIVING RENTAL GROWTH
What we did
Our market knowledge allows us to adapt and refurbish our buildings in response to demand. Combining this with our marketing, letting and asset management skills, we are repositioning the Parkhall Trading Estate in Dulwich into a modern business centre.
How it created value
By creating community space, upgrading our on site facilities including a cafe, and subdividing in response to the strong demand for small units, we have grown rents from £7.50 per square foot to over £20 over the last year.
Our in-house lettings team negotiate in the full knowledge of occupancy, enquiries and viewings, and use this to drive our pricing.
Rental income increase
Capital value increase
CLUB WORKSPACE,
THE LEATHERMARKET, SE1
UNDERSTANDING OUR CUSTOMERS
What we did
Listening to our customers helps us provide the services we know they need: from high capacity, dependable secure internet connections and business information resources, to drop-in space and social interaction with other entrepreneurs.
In response, we provide superior and resilient telecoms services across our portfolio and have introduced Club Workspace 'touchdown lounges' for those not requiring permanent space. We have also launched Inspiresme.co.uk as a business information resource providing a competitive advantage for customers. Our regular social networking events in our centres are providing opportunities for ideas generation and business referrals.
How it created value
Building closer links to customers through enhanced services and platforms such as these has helped to improve our revenue streams while attracting new fast-growing companies in the creative and TMT sectors. Our social networking activities have helped to connect people, resulting in a high level of inter-trading between our customers. We are truly helping them to grow faster, with a beneficial impact on the growth of our pricing.
Revenue increase
Brand enhanced
EXMOUTH HOUSE,
CLERKENWELL, EC1
REPOSITIONING
What we did
To ensure that Exmouth House is fully aligned with the future needs of our growing customer base, we have obtained planning consent for an additional floor. As part of the consent, we will create a new entrance atrium and refurbish the whole property.
How it created value
By repositioning the building in this manner we anticipate a significant increase in rental income.
Rental income increase
CHESTER HOUSE,
KENNINGTON PARK, SW9
CORPORATE SOCIAL RESPONSIBILITY
What we did
In refurbishing Chester House from an existing light industrial building into a new business centre, we put energy conservation as a top priority. As a result, the building features strong carbon management and enables us to work closely with our customers to improve recycling rates.
How it created value
We have reduced both our energy costs and carbon dioxide emissions, while reducing the amount of waste sent to landfill to zero. For this we have been awarded a BREEAM 'very good' rating and expect to perform well against the CRC energy efficiency targets.
An independent study on the lifecycle carbon emissions of this "recycled" building demonstrated that our strategy of reusing the existing fabric is producing a significantly smaller carbon "footprint" than a new construction would.
Energy savings
Brand enhanced
HIGHBURY GROVE,
ISLINGTON, N5
REDEVELOPMENT
What we did
Having obtained planning consent for 72 apartments and a new business centre on a tired studio and light industrial site in Islington, we partnered with Taylor Wimpey who will develop the scheme. Workspace will retain full ownership of the newly developed fully-fitted business centre which has been designed to meet the demands of our customers.
How it created value
For no capital outlay, we will have a new state-of-the-art facility, generating far higher rental streams than the existing buildings together with cash and an overage on sale of the apartments. This is the second in a series of similar schemes we have planned over the next three years.
Rental income increase
Capital value increase
GREENHEATH BUSINESS CENTRE,
BETHNAL GREEN, E2
PLANNING GAIN
What we did
This commercial building had a large and underutilised car park. Working with the local authority we received consent to build 73 apartments. We then sold the site to Peabody.
How it created value
We realised significant cash with marginal loss of income.
We have realised £13m from this and similar sales during the year.
Capital value increase
CHANDELIER BUILDING,
WILLESDEN, NW10
ACQUISITION
What we did
Through our partnership with BlackRock, we acquired this high potential building in north-west London. At the time, the property was 78% occupied. By dividing up vacant space into accommodation that is now more suitable, and actively marketing this to a broader range of customers, we have driven occupancy up to 90%.
How it created value
Growing the occupancy has increased rent roll and increased the asset value. Further minor refurbishment is planned.
The BlackRock Workspace Property Trust was set up to acquire £100m of property, of which £60m has been invested. We continue to seek properties where we can significantly improve occupancy and income.