Workspace Group boss Graham Clemett to retire

Workspace Group’s chief executive intends to retire in 2024 following a five-year spell in charge.

Graham Clemett initially joined the real estate investment trust in 2007 as finance boss, a position he held for 13 years, before succeeding Jamie Hopkins in 2019 to the top job.

His tenure at Workspace has coincided with a relatively turbulent era for the firm, with the Covid-19 pandemic severely affecting property valuations, rental income and occupancy rates.

Outgoing: Graham Clemett initially joined the real estate investment trust in 2007 as finance boss, a position he held for 13 years, before succeeding Jamie Hopkins in 2019 to the top job

After lockdown restrictions were loosened, the company’s portfolio was badly hit by the Bank of England hiking interest rates in response to surging inflation.

Commercial landlords are also spending large sums upgrading their properties to ensure they comply with tougher energy efficiency standards.

In its most recent six-month results, Workspace slumped to a £147.9million pre-tax loss, having made a £35.8million profit during the same period the previous year.

However, the group, which usually serves small and medium-sized businesses, has outperformed traditional commercial property landlords thanks to its flexible space offering.

Firms have increasingly sought more flexible contracts since Covid-19 led to a surge in hybrid and remote working.

Clemett said: ‘The company is in great shape and well positioned in the current market. I am confident that, with the fantastic team we have across the business, Workspace has an exciting future and will continue to go from strength to strength.’

The search for his successor will be led by chairman Duncan Owen, who said Clemett had ‘been an excellent CEO and valuable member of the Workspace board over a long period of time’.

Alongside the announcement, Workspace revealed rental income rose by 1 per cent on a like-for-like basis to £108.3million in the three months ending December.

The London-based firm noted ‘resilient’ underlying demand during the period, even though December traditionally sees a slowdown in activity.

However, its total rent roll dipped slightly to £ 140.5million due to refurbishment projects and the sale of non-core assets.

Workspace recently sold an advertising tower near The Mille Building in Brentford for £9million and the Three Acre industrial estate in Folkestone for £4.5million.

Clemett said: ‘We have delivered another resilient operational performance in the third quarter, highlighting the attraction of our distinctive, flexible offer.’

He added that Workspace was confident following ‘a good start to the fourth quarter, combined with a positive trading outlook and strong balance sheet.’

Workspace Group shares were 0.9 per cent lower at 519.5p on Thursday morning and have slumped by around 43 per cent over the past five years.

This post first appeared on Dailymail.co.uk