Property in the United Kingdom has always been a tricky market to analyse. It seems to suffer from extreme levels of volatility, as bubbles can occur and burst within short spaces of time. All it means is that real estate trusts such as Workspace tend to have a question market hanging over them from an investment perspective. However, given the group’s current state, have Workspace shares evolved from their “maybe” tag into a fully fledged “buy”?
Even though people can be highly critical of property, sometimes you just have to sit back and accept that success is a success. Workspace has undoubtedly been a strong performer in 2014, their pre-tax profits saw a 61% rise from 2013 to £173.7 million. The EPRA net asset value per share was also on the rise by 20% to nearly £6 million. The company has been open in touting such profitable successes by stating that they are pushing forward with “the next phase of their redevelopment and refurbishment activity”. When it comes to investment trusts profit is often all or nothing and in 2014 Workspace shares definitely has it all.
When you find success in a temperamental marketplace such as property, you must strike while the iron is hot. Workspace is definitely a trust looking to get an edge on the competition. They did this by raising £96.5 million in funds, by placing over 14.5 million new shares into the market. Each share sold for 660p a time, making them the move highly profitable and smart by anyone standards. Group chief executives have moved quickly to praise the success of such by stating how “delighted” they are to have pulled in the support of so many investors. It is safe to say that off the back of this move that Workspace shares are a hot commodity.
Being a property group, those investing in Workspace shares will want to see that their investment is housed in somewhere that exudes quality. Workspace recently took the step to make such a reality, by capitalising on their success by buying an exclusive Fleet Street property. Those looking for Workspace will now find them in the former Business Environment Group building at 160 Fleet Street. Their offices now cover over seven floors and 54,000 square feet. Success needs to be shown and it is safe to safe that Workspace is truly showing it.
Trusts were once upon a time an investment product only for those who had a deep and rich understanding of the business structure involved. However, times have changed and now they should definitely be on the radar of any and every investor. When evaluating real investment trusts, Workspace stands out as they are showing tremendous positives, posting strong figures across the board; it is easy to see why Workspace shares are considered such a valuable stock. Workspace shares may be an expensive investment in many regards, but over time they could prove to be one that is well worth parting with the cash for.
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