Workspace to raise £63m in attempt to accelerate its portfolio

Small business landlord Workspace today said it planned to raise £63 million from a discounted rights issue to accelerate investment in its portfolio.

The 1-for-4 rights issue is being made at a price of 23 pence per new ordinary share, representing a 21 percent discount to the stock's Wednesday close.

"The rights issue will enable us to take advantage of attractive re-positioning and acquisition opportunities that should deliver income and capital growth enhancing returns to our shareholders," chief executive Harry Platt said in a statement.

Platt said there was good demand from the company's small- and medium-sized customers in London.

For the first quarter ended June 30, total occupancy rose 0.4 percent to 84.0 percent.

Underlying property valuation at June 15 was up 1 percent at £726.8 million.