Key facts
- Activist investor Saba is demanding that UK property trust Workspace sell off its office portfolio.
- Saba also called for Workspace to implement a share buyback program to boost its share price.
- The hedge fund argues that an accelerated disposal program would unlock value more quickly and with lower risk.
- Workspace's shares have fallen approximately 60% since 2021, trading at a discount to net asset value.
- Saba is Workspace's second-largest shareholder with a 24.7% stake.
- A vote on Saba's proposed board replacements is scheduled for Workspace's July annual general meeting.
Activist investor Saba has intensified its pressure on the UK property trust Workspace, urging it to sell off its portfolio of offices and implement a share buyback program. In an open letter, Saba argued that the trust's current strategy, which involves reinvesting disposal proceeds, carries significant execution risk and will take years to generate meaningful returns. Saba, Workspace's second-largest shareholder with a 24.7% stake, advocates for an accelerated disposal program to unlock instant value for investors.
Workspace's shares have been trading at a substantial discount to their net asset value, having fallen around 60% since 2021, prompting Saba to take a stake last year. The hedge fund has previously called for the removal of Workspace's non-executive directors. Recently, Workspace appointed a new executive team that has overhauled the group's strategy to focus on earnings and reinvestment, directly opposing Saba's proposed approach.
Saba has outlined a three-phase disposal roadmap for 56 assets, including an initial group of 21 priority properties, a second phase of 19 assets, and a final tranche of 16 assets. The hedge fund also plans to pursue its campaign to replace Workspace's board with its own nominees at the company's annual general meeting in July.