Our
Strategy

London is growing and changing

Maximising the value of our London-based property portfolio and its wider opportunities for repositioning and redevelopment. Priorities in 2014/15

• Make planning applications for four further schemes.
• Sell or appoint development partners for newly consented schemes.

Performance in 2014/15

• Planning consent for mixed-use developments obtained at Arches Business Centre, Enterprise House, Hayes and Wandsworth Phase 2 (The Light Bulb).
• Deals agreed with development partners on Poplar Business Park, Bow Enterprise and Faircharm.
• Sale of 10 industrial properties supporting the repositioning of the Workspace portfolio.
• Won Specialist Property Company of the Year 2014 at the Estates Gazette Awards and the UK Stock Market Award for Best Real Estate PLC.

Priorities for 2015/16

• Make planning applications for six further schemes.
• Appoint development partners for newly consented schemes.
• Opening of Grand Union Studios.

Key risks

• Adverse planning decisions.
• Construction cost and programme overruns.
• Downturn in the London property market.

Market trends London’s population continues to grow, resulting in increasing demand for office rental space.

Creating modern growth environments

Owning the right properties that are tailored to our customers’ needs and intensively managing these properties to drive occupancy and rents. Priorities in 2014/15

• Focus on driving pricing and rent roll.
• Continue our refurbishment projects including completion of Metal Box Factory.
• Progress with further potential redevelopment/refurbishment projects.
• Continue with our targeted acquisitions programme.

Performance in 2014/15

• Total rent roll up 19% in the year.
• Metal Box Factory and The Light Bulb opened during the year and are both letting up ahead of expectations.
• Major refurbishments of Linton House, Westminster Business Square and Cargo Works are progressing well.
• Acquisition of five complementary properties in strategic locations including 160 Fleet Street and Edinburgh House.
• Like-for-like occupancy at 92.2% with continued strong growth of like-for-like rent per sq. ft. up 16% in the year.
• Pill Box in Bethnal Green won ‘Best New Place to Work’ at the London Planning Awards.

Priorities for 2015/16

• Complete the major refurbishments at Cargo Works, Linton House and Westminster Business Square.
• Continue with further refurbishment projects including Barley Mow and Hatton Square Business Centre.
• Continue with our targeted acquisitions programme.
• Continue to drive pricing and rent roll.

Key risks

• Failure to meet customer space and service expectations.
• External macroeconomic factors influence the demand for our accommodation.

Market trends More relevant properties in alignment with our strategic priorities becoming available as churn in the London property market increases.

New and growing companies

Understanding our customers and enhancing our brand by responding to their needs. Priorities in 2014/15

• Roll out of ClubWorkspace at four further locations.
• Extend our telecoms and data product range.

Performance in 2014/15

• Club Workspace launched at ScreenWorks, Pill Box, Parkhall and Metal Box Factory, increasing the number of clubs to 10 locations.
• Our platform of digital infrastructure and services is now available throughout 30 of our major business centres. The platform offers superior internet access and also a range of cloud services.
• Joint venture with Generate Studio offering office design services and provision of furniture.
• We have upgraded and expanded our meeting room offer.

Priorities for 2015/16

• Continue to build provision of additional services to customers and integration of ClubWorkspace members.
• Extend our telecoms and data product range.
• Programme of hosted events at all our business centres to support networking opportunities amongst our customers.

Key risks

• Failure to meet customer service expectations.
• Poor performance of our suppliers.

Market trends Through our increased customer interaction we have identified that customers want more than just space. These requirements are built into new refurbishments and developments.

Driving performance

Experienced teams with specialist skills creating a responsible culture of risk management and performance, with all employees focused on the customer. Interests aligned across the Company, as well as with investors. Priorities in 2014/15

• Provide employees with interesting and rewarding roles.
• Increase number of training days and number of employees undertaking training.
• Overhaul training programme for customer-facing staff.

Performance in 2014/15

• Encouraged further study, supporting 10 staff to pursue professional and vocational qualifications.
• Invested in technology and rolled out regular external training for all customer-facing staff in our properties, focused on social media, networking and sales.
• 65% increase in training days completed by our employees (631 days in total).
• 24% increase in number of employees undertaking training (146 people trained).
• Regular presentations given by senior management to all staff on business performance and Company achievements.
• 27 long service awards presented to staff for 5, 10, 15 and 20 years’ service.

Priorities for 2015/16

• Expand training and career development opportunities for employees.
• Build on the internal communications platform to ensure all staff are aligned in delivering Company objectives.
• Roll out next stage of training for customer-facing staff, to focus on people and stress management.

Key risks

• Ability to attract and retain talented and committed individuals.

Market trends People are increasingly looking for their employers to provide professional development opportunities, as well as taking an active interest in the environmental impact their companies make on the world around them.

Increasing recognition and reputation

Focused on developing our brand to drive performance across the business. Priorities in 2014/15

• Develop and enhance our social media profile.
• Continue to ensure refurbishment and redevelopment activity fits with our CSR strategy.
• Continue to invest in carbon reduction initiatives and encourage our customers to follow suit.

Performance in 2014/15

• Our social media activity generated 20% of Workspace website referrals.
• 15,000 enquiries during the year, an increase of 15%.
• Launched the NGC Forum at the House of Commons in January.
• Pill Box in Bethnal Green won ‘Best New Place to Work’ at the London Planning Awards.
• Worked with customers to reduce carbon emissions in our buildings and invested in energy-reducing equipment.

Priorities for 2015/16

• Cement Workspace’s position as the home to new and growing companies.
• Develop our communications platform, including social media and our website, to enhance brand visibility and engagement with our customers.
• Launch the new Workspace website, integrating the customer, investor and social sites and enhancing the customer experience.

Key risks

• Failure to differentiate our brand.
• Lose contact with our customer base.

Market trends London’s economic growth is being driven by our customer base of new and growing companies who want to engage with relevant brands that they trust.