Workspace to buy property firm McKay Securities for $362 million

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NEW DELHI: London-focused office-space provider Workspace Group WKP.L said on Wednesday it plans to buy commercial property firm McKay Securities MCKS.L for about 272 million pounds ($361.7 million) amid a shift to hybrid working as economies open up.

The cash-and-stock deal values each McKay’s share at 297 pence, Workspace said, with McKay shareholders getting 209 pence per share in cash for every share they own and 0.115 new Workspace shares apiece.

Global economies have reopened following the easing of pandemic-fuelled restrictions and office-space providers have witnessed a recovery as businesses are bringing back employees to the office after being forced to reorganise operating during the peak of the pandemic.

In January, FTSE 250-listed Workspace said demand had remained strong, and reiterated strong client preference for its spaces. It collected 96% of rent due for the third quarter, as of Jan. 18, taking the year-to-date collection rate to 97%.

Rothschild & Co is the financial adviser for McKay, while J.P. Morgan Cazenove is working with Workspace on the deal.

Source: Reuters