Workspace, a co-working and serviced office provider, has planned to deliver more than 1m sq ft of office space in the next three years.
Sources say the flexible office provider plans to raise £20m this year through the sale of its three residential properties in Croydon, Southall, and Wandsworth in October.
Workspace will be on the search for new office space across London, focusing on more central boroughs, where it sees demand from customers.
“We have already received £8m from our property in Croydon,” said chief executive Jamie Hopkins. “We will receive proceeds as and when we get vacant possession and complete the transaction.”
The firm reported a 3.3% rise in net asset value (NAV) per share to £9.53 in the year ending 31 March 2017. Workspace also revealed net rental income was up 6.9% to £79.2m.
According to PropertyWeek, Workspace reported a profit before tax of £88.8m in 2017, compared to £391.3m in the previous year, due to fall in the value of its portfolio and booking a loss on disposals. However, revenue rose to £108.8m from £101.2m.
“This year, more than ever before, we have seen increasing evidence that our strategy is working,” said Hopkins. “Demand from all types of businesses across London is firmly moving towards the highly designed and super connected space let on personalized and flexible terms that Workspace offers.”
“Workspace has delivered another year of strong profit progression as occupational trends towards flexible working continue,” Hopkins said. “It has seen a good level of enquiries and lettings continue into FY18, with no sign of the softening occupier demand increasingly evident in traditional office markets. Behaviour trends continue to evolve towards Workspace’s flexible model.”