Flexible office group Workspace has stepped up its bid to fend off an activist investor campaign as it warned of a “clear risk of value destruction” ahead of a crucial shareholder vote.
The London-listed office space landlord called on investors to vote against proposals tabled by New York based hedge fund Saba at its annual general meeting (AGM) later this month.
It claimed Saba’s plans for a forced sell-off of Workspace properties was “high-risk, short-sighted and not suitable”.
Saba – run by founder and chief investment officer Boaz Weinstein – recently upped its stake in Workspace to 28%, making it the second largest shareholder in the firm.
In January, it called for Workspace to be wound down, claiming its shares traded below the value of its properties.
Saba then called in May for all six of the firm’s non-executive directors to be ousted and replaced.
Workspace has seen its shares plunge to their lowest level for more than a decade, having warned over profits as it faces rising costs and falling rents.
In May, it said results for the year to March 2027 would be impacted by lower rents and occupancy rates amid wider economic uncertainty, as well as rising debt and energy costs.
Workspace said it was bracing for a “substantial step down” in 2026-27 earnings.
On Thursday, the group said: “We recognise the current share price doesn’t reflect the value of our business – accordingly, the board has proactively taken steps to develop an enhanced strategy and will continue to keep an open dialogue with our shareholders.
“The board has a clear, disciplined strategy to deliver long-term sustainable value for all shareholders and the right board and management to implement and oversee it.”
It added: “Workspace shareholders deserve the opportunity to see this plan, which the board believes is lower risk and will deliver superior value compared to Saba’s proposals, come to fruition.
“The board sees a clear risk of value destruction in the execution of a stealth ‘managed wind-down’ plan by Saba nominees with limited operational public listed REIT experience.”
Shareholder votes on AGM resolutions must be made by July 21, with the AGM taking place on July 23.
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