Workspace Group Plc · LSE:WKP
Workspace — Investor Day (February 2017)
57 slides from Workspace's investor day presentation, Feb 28, 2017
Slide 1: Workspace Group Plc Capital Markets Day
WORKSPACE GROUP PLC CAPITAL MARKETS DAY LOCATION LOCATION TECHNOLOGY 28 February 2017
Slide 2: Agenda
AGENDA Introduction Jamie Hopkins Chief Executive Officer The Impact of Innovation in Real Estate Michael Davis Head of London Unlimited, JLL The Importance of Technology for our Customers and our Business Chris Pieroni and James Friedenthal Operations Director and Head of Corporate Development Brin
Slide 3: Agenda: The Impact of Innovation in Real Estate
AGENDA The Impact of Innovation in Real Estate Michael Davis Head of London Unlimited, JLL See separate JLL presentation at: http://www.workspace.co.uk/investors/investors/reporting-centre 3
Slide 4: Agenda: The Importance of Technology for our Customers and our Business
AGENDA The Importance of Technology for our Customers and our Business Chris Pieroni and James Friedenthal Operations Director and Head of Corporate Development 4
Slide 5: Location, Location, Technology Agenda
LOCATION, LOCATION, TECHNOLOGY AGENDA 1. The Importance of Technology 2. Providing Technology for our Customers 3. Workspace Technology 5
Slide 6: 1. The Importance of Technology
1. THE IMPORTANCE OF TECHNOLOGY 66
Slide 7: Driving Benefits for All
THE IMPORTANCE OF TECHNOLOGY DRIVING BENEFITS FOR ALL The more data we have, and with a versatile platform to access and analyse it, the more we can drive our business We provide technology for our customers Continuously investing in Our technology in UNDERSTANDING customers response to OUR use our
Slide 8: Workspace Customer Profile
THE IMPORTANCE OF TECHNOLOGY WORKSPACE CUSTOMER PROFILE Our customers are operating right across the economic spectrum • 50 different sectors • Minority are pure ‘tech’ companies • Majority in traditional sectors, e.g. marketing, business consultancy, architecture, fashion etc. But…all using technol
Slide 9: Strategy
THE IMPORTANCE OF TECHNOLOGY STRATEGY • To ensure our properties attract high value, high growth, digitally dependent customers • To get a more intimate understanding of our customers • Technology to become an integral part of our brand 9
Slide 10: 2. Providing Technology for our Customers
2. PROVIDING TECHNOLOGY FOR OUR CUSTOMERS 10
Slide 11: Connectivity Integral to Our Brand
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS CONNECTIVITY INTEGRAL TO OUR BRAND Result: Connectivity is a reason for customers to come to Workspace 11
Slide 12: Direct Management
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS DIRECT MANAGEMENT Objective: Remove connectivity as an issue for Workspace customers We had to step in and take charge! Comms rooms: Before… …And after 12
Slide 13: The Old Network
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS THE OLD NETWORK Business Business Centre Centre Exchange Exchange Internet Services Business Business Centre Centre Exchange Exchange Exchange: Local distribution point operated by Openreach Business Centre: Several providers with different equipment feeding in
Slide 14: The Network Today
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS THE NETWORK TODAY Business Business Centre Centre Exchange Exchange Core Core Node Node (DC) (DC) Internet Services Core Core Node Node (DC) (DC) Business Business Centre Centre Exchange Exchange Core Node: Dedicated presence within multiple state-of-the-art Da
Slide 15: Workspace Network – Ownership
PROVIDING technology FOR OUR CUSTOMERS WORKSPACE NETWORK – OWNERSHIP Business Business Centre Centre Exchange Exchange Core Core Node Node (DC) (DC) Internet Services Core Core Node Node (DC) (DC) Business Business Centre Centre Exchange Exchange Equipment and network infrastructure owned/managed by
Slide 16: Workspace Network of Properties
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS WORKSPACE NETWORK OF PROPERTIES 16
Slide 17: Digital Demand
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS DIGITAL DEMAND Average total daily data consumption at Metal Box Factory 17
Slide 18: Digital Demand: How Data Is Consumed
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS DIGITAL DEMAND How is data being consumed at Metal Box Factory 50 day data consumption: 18
Slide 19: Digital Demand: How Customers Consume Data
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS DIGITAL DEMAND We know how our customers are consuming data 45% 23% of connected devices of data consumed is are mobile for cloud storage Two thirds of these Over half of this is are Apple on Dropbox 19
Slide 20: Digital Supply
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS DIGITAL SUPPLY We are constantly upgrading the infrastructure • Data capacity and switching • Wi-Fi roll-out across all business centres Metal Box Factory: One of the first 10Gbps circuits in a London commercial multi-let building Over 1.3Gbps building-wide Wi-
Slide 21: Digital Supply: Bigger Circuits, More Devices
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS DIGITAL SUPPLY Bigger circuits, more devices 21
Slide 22: Best-in-Class Connectivity
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS BEST-IN-CLASS CONNECTIVITY • Connectivity accreditation given to building owners • Focus is on the digital infrastructure – Comms Room on each floor – Intakes and rises (precise specification) – Cables protected in secure riser cupboards – Back up: wireless con
Slide 23: Wi-Fi Rollout: The Pill Box Floorplate
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS WI-FI ROLLOUT The Pill Box floorplate 23
Slide 24: Wi-Fi Rollout: Competing Access Points
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS WI-FI ROLLOUT The Pill Box: Competing access points 24
Slide 25: Wi-Fi Rollout: 4 Access Points per Floor
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS WI-FI ROLLOUT The Pill Box: 4 access points per floor 25
Slide 26: Wi-Fi Rollout: No Competing Channels
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS WI-FI ROLLOUT The Pill Box: No competing channels 26
Slide 27: Connectivity Integral to Our Brand
PROVIDING TECHNOLOGY FOR OUR CUSTOMERS CONNECTIVITY INTEGRAL TO OUR BRAND Result: Connectivity is a reason for customers to come to Workspace 27
Slide 28: 3. Workspace Technology
3. WORKSPACE TECHNOLOGY Using our technology to understand our customers and their needs informs both customer services and building design
Slide 29: Building Knowledge
WORKSPACE TECHNOLOGY BUILDING KNOWLEDGE Moving focus from property management to customer understanding New initiatives Property Proven Management initiatives System CRM Website, Customer Enquiries & portal Lettings Activities in the buildings 29
Slide 30: What Does This Mean in Practice?
WORKSPACE TECHNOLOGY WHAT DOES THIS MEAN IN PRACTICE? Payment Finance Entry systems Wi-Fi 30
Slide 31: Driving Innovation
WORKSPACE TECHNOLOGY DRIVING INNOVATION And what is in the pipeline? Don’t think number of leases… think about number of individual customers! 31
Slide 32: Analysing Data
WORKSPACE TECHNOLOGY ANALYSING DATA 32
Slide 33: This Is a Smart Building
WORKSPACE TECHNOLOGY THIS IS A SMART BUILDING 33
Slide 34: Agenda: Bringing New Floorspace to the Market
AGENDA Bringing New Floorspace to the Market Angus Boag and Chris Pieroni Development Director and Operations Director 34
Slide 35: Bringing New Floorspace to the Market: Stages
BRINGING NEW FLOORSPACE TO THE MARKET AGENDA STAGES CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 1 2 1 12+ 1 6 4 14+ 1 12 3 NO. OF MONTHS Key 1.Identify Opportunities 8. Vacant Possession 2.Maximise Density 9. Enabling Works 3.Vision & Outline Requirements 10. M
Slide 36: 1. Identify Opportunities
BRINGING NEW FLOORSPACE TO THE MARKET 1. IDENTIFY OPPORTUNITIES Formerly Hatton Square Business Centre… CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 36
Slide 37: 1. Identify Opportunities: The Record Hall
BRINGING NEW FLOORSPACE TO THE MARKET 1. IDENTIFY OPPORTUNITIES …Opening soon as The Record Hall CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 37
Slide 38: 2. Maximise Density: Grand Union Centre
BRINGING NEW FLOORSPACE TO THE MARKET 2. MAXIMISE DENSITY Grand Union Centre Before redevelopment CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 38
Slide 39: 2. Maximise Density: Grand Union Studios
BRINGING NEW FLOORSPACE TO THE MARKET 2. MAXIMISE DENSITY Grand Union Studios After redevelopment CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 39
Slide 40: 3. Vision & Outline Requirements
BRINGING NEW FLOORSPACE TO THE MARKET 3. VISION & OUTLINE REQUIREMENTS CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 40
Slide 41: 4. Customers
BRINGING NEW FLOORSPACE TO THE MARKET 4. CUSTOMERS CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 41
Slide 42: 5. Pre-Development Budgets
BRINGING NEW FLOORSPACE TO THE MARKET 5. PRE-DEVELOPMENT BUDGETS CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 42
Slide 43: 6. Planning Process
BRINGING NEW FLOORSPACE TO THE MARKET 6. PLANNING PROCESS Rainbow planning consultation CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 43
Slide 44: 7. Post Consent Financial Appraisal
BRINGING NEW FLOORSPACE TO THE MARKET 7. POST CONSENT FINANCIAL APPRAISAL CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 44
Slide 45: 8. Vacant Possession
BRINGING NEW FLOORSPACE TO THE MARKET 8. VACANT POSSESSION Cremer Street refurbishment CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 45
Slide 46: 9. Enabling Works
BRINGING NEW FLOORSPACE TO THE MARKET 9. ENABLING WORKS The Faircharm, Deptford The Frames, Shoreditch CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 46
Slide 47: 10. Main Contract
BRINGING NEW FLOORSPACE TO THE MARKET 10. MAIN CONTRACT Barley Mow extension, Chiswick CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 47
Slide 48: 11. Informed Design
BRINGING NEW FLOORSPACE TO THE MARKET 11. INFORMED DESIGN 4 1 2 3 1. Breakout space 2. Club Workspace 3. Club Team rooms 4. Meeting rooms CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 48
Slide 49: 12. Marketing
BRINGING NEW FLOORSPACE TO THE MARKET 12. MARKETING CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 49
Slide 50: 13. Letting Strategy
BRINGING NEW FLOORSPACE TO THE MARKET 13. LETTING STRATEGY Reference Type Floor Sq. Ft. Asking price per Base price per sq. Comments sq. ft. ft. GU.001 Studio Ground 2,031 52.50 47.50 Incomplete to measure – ground floor with terrace and full height glazing GU.201 Studio Second 250 45.00 42.00 Doubl
Slide 51: 14. Post Completion
BRINGING NEW FLOORSPACE TO THE MARKET 14. POST COMPLETION CONCEPT & DESIGN DECISION DELIVERY & MONITORING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 51
Slide 52: Summary: Development Pipeline by Year
100,000 120,000 140,000 Sq. ft. 0 20,000 40,000 60,000 80,000 Cargo Works The Light Bulb 2015 SUMMARY Metal Box Factory Projects underway Completed Projects Pipeline with planning Grand Union Studios Pipeline pre-planning / design The Print Rooms 2016 Vox Studios Barley Mow The Faircharm The Leather
Slide 53: Our Strategy Is Being Recognised
OUR STRATEGY IS BEING RECOGNISED REAL ESTATE & TECHNOLOGY AWARDS Best New Place to Work Platinum Rating for Metal Box Factory The London Planning Awards 2014/2015 Wiredscore 2016 Pill Box Gold Standard Best Real Estate PLC Investors in People 2016 UK Stock Market Awards 2015 Workspace of the Year Sp
Slide 54: Acquisition: 13-17 Fitzroy Street, W1
ACQUISITION 13-17 FITZROY STREET, W1 • 92,700 sq. ft. net lettable space • Let to Arup until Sept 2022, with potential early exit from Sept 2020 • Ideal configuration to reposition for multi-let • Aim to capture significant rental uplifts post-refurbishment 54
Slide 55: Acquisition: 13-17 Fitzroy Street, W1
ACQUISITION 13-17 FITZROY STREET, W1 55
Slide 56: 13-17 Fitzroy Street, W1 – Floor Plans
ACQUISITION 13-17 FITZROY STREET, W1 – FLOOR PLANS 56
Slide 57: Questions
WORKSPACE GROUP PLC CAPITAL MARKETS DAY QUESTIONS 28 February 2017