#London #United Kingdom #shareholder activism #Saba Capital #Workspace Group

Recent Developments at Workspace Group plc

In a letter addressed to shareholders, Saba Capital Management has provided updates regarding its campaign aimed at optimizing the value of Workspace Group plc. As a significant shareholder, holding approximately 24.7% of the company, Saba Capital has raised concerns about the current management’s performance and outlined strategies for improvement.

Background of the Investment

Saba Capital’s investment in Workspace began on August 5, 2025, motivated by the perceived gap between the company's stock price and the intrinsic value of its property portfolio. The belief that Workspace has been experiencing a long-term value erosion offers an opportunity for recovery through more focused strategic actions and increased oversight from the board. The inconsistent performance relative to its peers, underappreciated property assets, and executive leadership changes have contributed to Workspace trading at a significantly decreased net asset value (NAV).

Rejected Proposals and a Call for Change

On November 20, 2025, Saba Capital attempted to engage in discussions with the Workspace management, proposing measures to mitigate the company’s valuation discount. Despite this outreach, the response was lackluster, leading to the issuance of an open letter on January 8, 2026. The letter recommended an organized divestment strategy to enhance shareholder returns and requested that the board consider this proposal promptly. The current NAV discount of 50% presents a compelling opportunity for shareholder profit if managed correctly through property sales and share buybacks.

Management Shift and Strategic Outlook

Recent updates indicate that since the initiation of Saba Capital’s campaign, Workspace has appointed new leadership, including CEO Charlie Green and CFO Tom Edwards-Moss. On June 10, 2026, this executive team unveiled a strategy focused on profitability, intending to reinvest sales proceeds into property enhancements. However, there are valid concerns regarding the risks and uncertainties associated with this long-term plan, which may take years to yield substantial profit growth. Saba advocates for a more immediate pathway to higher shareholder value through the accelerated sale of non-essential assets and share repurchase strategies.

Proposal for Asset Divestment

Saba Capital has proposed a structured approach to property sales, delineated into three phases. The first phase includes 21 priority non-essential assets, followed by a second set of 19, and concluding with 16 strategically selected assets based on market opportunities. This method not only ensures value maximization but also allows flexibility to adapt to fluctuating market conditions. Moreover, Saba's plans include engaging reputable real estate firms for improved property management, enhancing occupancy rates, and subsequently completing strategic renovations to maximize rents and sales outcomes.

Independent Oversight and Restructuring

The ongoing discount to NAV suggests the need for substantial reevaluation of current board members' roles and effectiveness. Saba Capital argues that it is time for existing non-executive directors to step back, allowing new leaders who are well-equipped to safeguard shareholder value to take charge. Saba urges fellow shareholders to support its nominations, which include individuals with profound expertise in real estate management, capital allocation, corporate governance, and operational improvement.

Conclusion

This letter to shareholders encapsulates a key message: the imperative for change within Workspace Group plc’s management structure is critical for the enhancement of shareholder value. As discussions continue, Saba Capital remains committed to pursuing constructive dialogues with shareholders, aiming to solidify a strategy that prioritizes immediate and sustainable value creation for all stakeholders involved.