Workspace inks 20-year lease, investment deal with Qube

(Sharecast News) - Workspace Group announced on Wednesday that it has signed a 20-year lease agreement with specialist flexible workspace operator Qube for 32,000 square feet at The Old Dairy in Shoreditch, as part of a new strategic partnership aimed at capturing demand from London's fast-growing creative and content industries. Qube, a members' club and workspace provider for music and content creators, is set to establish a flagship 'creator hub' at The Old Dairy, featuring recording, podcasting and DJ studios alongside co-working and office space.

The company already operates four London sites and plans further expansion across the city.

Workspace said it would also acquire a minority equity stake in Qube for £3m, which would largely be reinvested into the fit-out of the Shoreditch site.

The landlord would contribute an additional £3.45m to deliver studios built to Qube's specification.

Workspace said the partnership would enable both firms to develop a scalable model for creative-sector workspaces across its London portfolio and potentially beyond.

"Our recent market research showed that London's SME market is growing and changing, with specialist operators like Qube catering to the specific needs of fast-growing creative and innovative industries," said chief executive Lawrence Hutchings.

"As we work hard to fix, accelerate and scale our business, this long-term lease at one of our flagship Shoreditch buildings, alongside a new strategic partnership with Qube, is an accelerator of our operating platform, designed to capture new demand channels while remaining disciplined on capital allocation."

He added that the agreement marked "a positive step forward in our plan to be the go-to home for London's creators, makers, innovators and disruptors".

Workspace said the partnership model reflected its strategy of targeting high-growth SME sectors in London through capital-light initiatives.

It said its freehold portfolio and flexible "blank canvas" model allowed it to work with specialist operators to tailor spaces to emerging industries, particularly in areas such as Shoreditch that attract creative and technology-focused businesses.

"Partnering with Workspace marks an exciting next chapter for Qube," commented Qube co-founder and chief executive Amin Hamzianpour.

"Together we're creating a flagship home for London's creator community - a space where music makers, content producers and businesses can do their best work, collaborate and grow."

At 0912 GMT, shares in Workspace Group were up 0.83% at 408.35p.

Reporting by Josh White for Sharecast.com.