Workspace Group, the London-listed flexible office provider, has intensified its campaign against activist investor Saba Capital Management, warning shareholders of a “clear risk of value destruction” if the hedge fund’s proposals are adopted at the upcoming annual general meeting (AGM).
Workspace Board Rejects Saba’s Demands
The company called on investors to vote against all resolutions tabled by New York-based Saba, which holds a 28% stake—making it the second-largest shareholder. Saba has demanded the sale of Workspace’s property portfolio and the replacement of all six non-executive directors.
Workspace’s board described Saba’s plan as “high-risk, short-sighted and not suitable,” arguing that a forced wind-down would destroy value. “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 real estate investment trust experience,” the company stated.
Saba’s Growing Influence and Workspace’s Struggles
Saba, founded by Boaz Weinstein, has steadily increased its stake since January, when it first called for Workspace to be wound down, citing a gap between the share price and property values. In May, Saba formally demanded the ouster of all non-executive directors.
Workspace’s shares have fallen to their lowest level in over a decade, following profit warnings due to rising costs, falling rents, and economic uncertainty. The company warned that results for the year to March 2027 would be hit by lower rents, occupancy rates, debt costs, and energy expenses, with a “substantial step down” in 2026-27 earnings.
Workspace Defends Its Strategy
On Thursday, Workspace acknowledged that its current share price does not reflect the business’s value. “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 company said.
It added: “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. 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.”
Saba’s Criticism and Shareholder Vote
Saba earlier this week accused Workspace of having “failed its investors” and expressed “little confidence” in the company’s turnaround strategy, citing a “long record of value destruction.”
Shareholders must submit their votes on AGM resolutions by July 21, with the AGM scheduled for July 23.
