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• Workspace rejected Saba Capital’s proposal to wind down the business over 12 months, stating that the plan was not achievable and would not maximise shareholder value.
• Saba Capital, which holds around 18.21% stake in the company, has also proposed removing five non-executive directors and appointing four new directors ahead of the July 23 AGM.
• The office-space provider continues to face pressure from hybrid working trends, lower rental growth and rising costs, with the company earlier warning of a sharp decline in fiscal 2027 profit.
Workspace has turned down a proposal from investor Saba Capital to gradually sell down the business over a year, saying the plan would not maximise shareholder value and could not be realistically achieved within the suggested timeline. Advertisement
The UK-based flexible office-space provider stated over the past week that it had engaged in discussions with Saba Capital before deciding against the proposal. The investor had suggested that selling assets and winding down operations could help narrow the gap between Workspace’s market valuation and the underlying value of its property assets.
At the same time, the company confirmed that it had received a shareholder request seeking changes to its board structure ahead of the upcoming annual general meeting scheduled for July 23. Saba Capital has proposed the removal of five existing non-executive directors and the appointment of four new non-executive directors.
The developments come at a time when commercial office landlords across the UK continue to face pressure from changing workplace trends. Demand for flexible office space has remained uneven as more companies continue hybrid working models, leading several businesses to cut office-related spending, reduce space requirements or delay leasing decisions.
Workspace said it remains confident in its existing business strategy despite the investor pressure. The company added that it would provide more details along with its full-year financial results on June 10.
The company had already indicated last month that its fiscal 2027 profit is expected to decline sharply compared to fiscal 2026 levels. Workspace had linked the expected fall to softer rental growth and rising operating costs, reflecting broader challenges in the office real estate segment.
Saba Capital currently holds around 18.21% of Workspace shares, making it one of the company’s significant shareholders. Its push for operational and board-level changes reflects increasing investor scrutiny across listed real estate companies, particularly those exposed to office assets where occupancy and rental performance remain under pressure after the pandemic-driven shift in workplace habits.
In recent years, several office-focused property companies across Europe have also faced valuation concerns as higher interest rates, refinancing costs and slower leasing activity affected investor sentiment. Workspace’s decision to reject the proposal indicates that the company believes long-term value can still be created through its current operating model rather than through a managed wind-down of the business.
Source Reuters
5th Jun, 2025
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