Workspace Group, the London-listed provider of flexible office space, is considering the possible disposal of its most valuable property as it seeks to strengthen its balance sheet while facing ongoing pressure from activist investor Saba Capital, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that the company is working with advisers to evaluate a potential sale of Salisbury House, a prime City of London asset viewed as the crown jewel of its portfolio. The building, which is understood to generate the highest rental income within Workspace’s estate, could attract offers in the region of £125m ($170m). The discussions remain private and no final decision has been made.
The potential transaction comes as Workspace continues to progress its wider asset disposal programme. In its most recent earnings update, the group confirmed it had agreed to sell £125.7m of properties, as part of a broader £200m target, and noted that additional sales remain under consideration.
A spokesperson for Workspace reportedly declined to comment on the Salisbury House review.
The flexible office sector has faced sustained headwinds in recent years, with weaker demand and rising vacancy rates weighing on rental growth. Workspace has issued several profit warnings as market conditions softened, prompting renewed scrutiny from investors.
Saba Capital, led by Boaz Weinstein, has been vocal in its criticism of the company’s strategy. The hedge fund, which presented its investment case at the Sohn London conference in November, has argued that asset disposals could be used to fund share buybacks to enhance shareholder returns. In January, Saba went further, calling for a managed wind-down of the business in a letter to the board. It has since increased its stake, holding 18.2% of voting rights according to recent filings.
In response to strategic pressure, Workspace appointed Charlie Green—co-founder of a flexible workspace business acquired by Blackstone and now part of its Fora brand—as chief executive earlier this year. Green has outlined plans to reposition the company toward the “value” segment of the market, targeting startups, SMEs and scale-ups. However, he has cautioned that the transformation will require investment and time, and is likely to weigh on near-term profitability, including dividend reductions.
Investor sentiment has reflected these challenges, with Workspace shares down approximately 23% over the past year.
Workspace acquired Salisbury House, located on Finsbury Circus in the City of London, in 2017 for £158.7m. The property spans around 220,000 square feet, making it one of the group’s largest assets after its Kennington Park site, according to company disclosures.
