The Property Ticker

Research evidence excerpt

The Property Ticker

sposal discounts assumed in its proposal are

supported by recent evidence, noting that Workspace has sold 16 properties since April

2025 at an average discount of around 10% to book value. Saba also highlighted recent

disposals by Derwent London at relatively modest discounts. It said the key rationale is

that assets could be sold at discounts narrower than the discount at which Workspace

shares trade, with proceeds used for NAV-accretive share repurchases. In contrast, Saba

criticised management’s strategy of investing further capital into refurbishments,

highlighting its analysis that refurbishment projects completed between 2016 and 2022

generated a c.1.5% yield on cost versus management’s targeted 12%. Saba said investors

had expressed concerns over execution risk and the longer timeframe associated with the

company's reinvestment plan.Saba also rejected concerns that disposals would harm

tenant demand, stating that occupiers primarily value location, building quality,

flexibility and service rather than ownership of the property. The firm said tenants could

be supported through relocation incentives, flexible lease terms and moving-cost

contributions where necessary. The activist investor further stated that outsourcing

property management could maintain service levels if supported by specialist providers,

clear performance standards and oversight. (Source: Company)

• UK build-to-rent investment hits £2.2 billion in record second quarter: The UK

build-to-rent (BTR) sector recorded a record £2.2bn of investment in Q2 2026, taking H1

volumes beyond the full-year totals achieved through Q3 in each of the last three years.

Activity was driven by large-scale operational asset transactions, notably Morgan