Global law firm Ashurst is advising J.P. Morgan Cazenove on the approximately £272 million recommended offer for McKay Securities Plc (“McKay”) by Workspace Group plc (“Workspace”), a FTSE 250 REIT and one of London’s leading providers of flexible office space for over 30 years.
Workspace owns and manages approximately four million sq. ft. of business space across 59 properties in dynamic London locations. Workspace is home to thousands of London businesses and established brands. Workspace delivers capital and income growth from its distinctive flexible operating model, expertise in urban regeneration, active asset management and a focus on customer experience. Workspace owns its properties, typically large, character buildings in well-connected locations across London, which customers fit out as their own office space to reflect their identity and culture.
McKay is a commercial property investment company with REIT status specialising in the development, refurbishment and management of office, industrial and logistics property in the South East and London. McKay’s property portfolio is weighted to the M4 corridor, where McKay has deep expertise, with a focus on growing satellite towns benefitting from strong connectivity to London and robust demand amongst leading occupiers.
The Covid-19 pandemic has highlighted the attraction of flexible office space, as well as the importance for businesses of choosing the right office environment to attract and retain talent. Workspace’s flexible lease terms allow customers to expand and contract quickly in line with their business needs.
It is expected that the acquisition will be implemented by way of a Court-sanctioned scheme of arrangement of McKay. Under the terms of the acquisition, McKay shareholders will be entitled to receive 209 pence in cash per share and 0.115 new Workspace shares.
J.P. Morgan Cazenove is acting as financial adviser to Workspace in connection with the acquisition.
The Ashurst team was led by partners Tom Mercer and Tim Rennie, with support from counsel Darren Phelan and associate Colin Bugler.
