Workspace Group PLC · LSE:WKP
Workspace — Merger or Acquisition (March 2022)
10 slides from Workspace's merger presentation, Mar 2, 2022
Slide 1: Recommended acquisition of McKay Securities
Recommended acquisition of McKay Securities Accelerating our growth plans 2 March 2022
Slide 2: Important notice
Important notice NEITHER THIS DOCUMENT NOR ANY PART OR COPY OF IT MAY BE FURTHER DISTRIBUTED DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR ITS TERRITORIES OR POSSESSIONS OR TAKEN OR TRANSMITTED INTO AUSTRALIA, CANADA, NEW ZEALAND, SOUTH AFRICA, OR JAPAN OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN A
Slide 3: Transaction summary
Transaction summary Recommended £272m offer for McKay Securities (“McKay”) at 297p per share¹ • Offer comprised of: • 0.115¹ Workspace shares – c.£81m • 209p in cash – c.£191m • 33.7%2 premium to McKay closing price on 1 March 2022 • 32.0% premium to the 3-month VWAP on 1 March 2022 • 12.3% discount
Slide 4: Attractive opportunity
Attractive opportunity Enhanced • Increases our ability to capture strong demand Strong operational Apply most appropriate business plan to each for our flexible offer in London McKay asset to deliver best returns. This includes: growth potential benefits • Selectively extends our reach into South-E
Slide 5: McKay – overview
McKay – overview London & South-East Office focused REIT Portfolio mix1 • Specialists in the development, refurbishment and Portfolio of 34 assets valued at £490m: management of office, industrial and logistics assets • 7 London Offices valued at £160m • 18 full-time employees including three Execut
Slide 6: McKay – property portfolio
McKay – property portfolio London Offices South-East Offices Light Industrial Theale Portsoken Greyfriars Logistics Park, House, Road, Reading Theale Minories (38,000 sq. ft.) (134,000 sq. (50,000 sq. ft.) ft.) Poyle Trading Swan Court, Prospero Estate, Wimbledon House, Redhill Heathrow (59,000 sq.
Slide 7: Workspace property footprint post-transaction
Workspace property footprint post-transaction Maidenhead Brentford Windsor Poyle Reading Richmond Theale Staines Heathrow Wimbledon Bracknell Newbury Croydon Chobham Weybridge Elizabeth line Woking stations and network Fleet Leatherhead Surface line / tunnel Farnborough Securities assets McKay prope
Slide 8: Proforma business shape post-transaction
Proforma business shape post-transaction Light Industrial Other Other 6% 4% Light Industrial 1% London Office London Office 10% 94% Light Industrial 33% South-East London Office 32% Office 5% 84% GAV: GAV: GAV: £2,402m1 £490m1 £2,892m South-East Office 31% Workspace McKay Combined Lettable floor are
Slide 9: Financing considerations
Financing considerations Workspace facilities McKay facilities £m £m Private placements 300 Revolving credit facility 180 Green bond 300 Aviva term debt 65 Revolving credit facility 200 245 Acquisition facility 200 Net debt1 (172) 1,000 Available facilities 73 Net debt1 (573) Available facilities 42
Slide 10: Conclusion
Conclusion 1 Enhanced growth potential: Increases our ability to capture strong demand for our flexible offering in London, selectively extends our reach into the South-East and adds an attractive portfolio of light industrial assets 2 Increased scale and diversity: Acquisition provides the platform