Workspace Group to Sell Up to £300 Million in Assets Amid Saba Capital Pressure

Workspace Group PLC announced on Wednesday it is preparing to sell a significant portion of its property portfolio, a move that comes amid escalating pressure from activist investor Saba Capital Management.

Details of the Disposals

In a trading update, the London-based flexible office provider stated it has assets valued at more than £200 million ($268.36 million) currently on the market. The company is also considering an additional £100 million in disposals.

The planned sales represent a substantial strategic shift for Workspace as it navigates a challenging commercial real estate market and pressure from its largest shareholder to unlock value.

Activist Campaign Intensifies

The announcement directly follows a disclosure on Tuesday from Saba Capital Management, which revealed it had increased its stake in Workspace (LON:WKP) to 29.1%. This makes the activist fund the company's single largest shareholder.

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Saba has been actively campaigning for a board overhaul and more aggressive strategic reforms at Workspace. The increased stake strengthens its position to influence company policy and push for measures it believes will boost shareholder returns.

Management Defends Strategy

Despite the asset sale plans, Workspace management maintained confidence in its current direction. "We are confident that we have the right strategy to be a more earnings-focused business and maximise long-term sustainable value for all shareholders," Chief Executive Charlie Green said in the statement.

The move to sell assets can be interpreted as a concession to Saba's demands, aiming to demonstrate a commitment to improving financial performance and shareholder value while the current board seeks to retain control.