Workspace, a London-listed office property company specializing in flexible office space, is actively opposing an activist investor’s attempt to take control and push for a break-up of the business ahead of a pivotal shareholder vote scheduled for later this month. The company is urging investors to reject a series of proposals put forward by Saba Capital Management, which holds a 28% stake and is Workspace’s second largest shareholder.
Under the leadership of new chief executive Charlie Green, Workspace has described Saba’s plan to sell off its property portfolio as "high-risk, short-sighted and unsuitable," warning of a potential loss of long-term value. The company cautions that Saba’s dispose-and-repurchase strategy could lead to value destruction and underperformance compared to Workspace’s own turnaround efforts.
Saba Capital Management, led by New Yorker Boaz Weinstein, has a track record of activist investments in UK real estate and investment trusts, having successfully influenced companies such as Impax Environmental Markets and Edinburgh Worldwide Investment in recent years. The firm is pressing for a significant overhaul of Workspace’s leadership, including a call in May to replace the entire board.
Workspace is calling on shareholders to vote against Saba’s proposals at the annual general meeting, which will determine whether the investor’s plans for a boardroom shake-up and property sell-off will proceed. Shareholders have until the proxy voting deadline on July 21 at 11 a.m. to make their decisions.
The disagreement highlights contrasting views on how best to enhance shareholder value. Workspace’s management believes its internal recovery strategy is preferable, emphasizing sustainable growth in the flexible office sector, while Saba argues that its planned break-up and asset dispositions will unlock greater returns in the near term.
As the vote approaches, both sides are appealing directly to investors, underscoring the stakes involved in the dispute over the future direction of Workspace.