NEWS ARCHIVE

TARGETFOLLOW REVEAL NEW SERVICED OFFICE COMPANY | 12/07/05

Targetfollow Group will this month launch ‘Targetspace’ a new venture to operate serviced office space within its extensive £440m UK wide portfolio. This is a stategic move for the Group which already has a proactive management policy and the ability to improve revenue from its tenants.

Targetspace has been set up to take advantage of the increasing demand for flexible managed space. Its launch is in line with the Group’s strategy to add to the wide range of services it already offers which also includes its own property and car park management companies operating across the portfolio.

The first 3 centres will be in 70 St Mary Axe in the City of London and 40 Bernard St in Bloomsbury, which are being refurbished and will be available at the end of the year, and Wembley Point which has been operating for some years as a centre but will be expanded and refurbished in the near future. These centres will offer almost 600 workstations in 54,000 sq ft of space, with additional properties in Birmingham and Warrington also currently being considered.

Targetfollow Director Ian Fox has been appointed as Managing Director of Targetspace. He said: “We have identified that business centres are a growing opportunity for the Group and are the next logical investment step to take. We have been operating flexible lease structures throughout our portfolio for years, and are comfortable with the concept. Targetspace will give us the chance to standardise how we do things and give the centres their own identity.”

“Owning the buildings will give us the flexibility to expand the individual business centres to respond to market demand. We have plans for expansion around the UK and possibly Europe over the next 12 to 18 months.”

Targetspace will capitalise on the growing £4 billion business centre market which has enjoyed five years of rapid growth and achieved 10 million sq ft of space in the UK, as highlighted in the latest DTZ Flexible Managed Office Market Report. According to DTZ, business centres account for just 1% of the UK office stock whereas the equivalent US figure is 15% - a fact that underlines the vast growth potential for the UK market.

Consultant James Hale, a Director with Regus for seven years, has been advising Targetfollow on setting up the new centres. James is Managing Director of City Skyline which he started last year to advise landlords and property companies on setting up and operating serviced offices. He said: “Serviced offices can be very profitable if the space is right. We are making sure we do this in buildings that work and not because we cannot let them conventionally which is why some operators run into problems. Targetspace makes real business sense for Targetfollow and will help to ensure the company maximises the full potential of its widespread portfolio.’

The Targetfollow Group was formed to specialise in acquiring and managing investment and development properties across the UK. Today Targetfollow has a substantial and growing portfolio of over 60 investments in office, industrial and retail buildings in more than 20 towns and cities, including prestige developments like Baskerville House in Birmingham, a development with the potential to become an internationally recognised building.