Workspace Group PLC (LON:WKP), London’s leading owner and operator of flexible and sustainable work space, has announced that it has signed an agreement with Qube for a 20-year 32,000 sq. ft. lease at The Old Dairy in Shoreditch.
· Qube to create new content creator hub at The Old Dairy, Shoreditch, with a 20-year lease for 32,000 sq. ft.
· Provides opportunity for Workspace to expand addressable market and tap into new demand channels from structurally growing SME industries
· Workspace to acquire a minority equity stake in Qube for £3m, which will largely be reinvested into The Old Dairy fit-out
· First of its kind partnership, with opportunities to scale further
Qube is a fast-growing members’ club and work space for music and content creators, providing world-class recording, podcasting and DJ studios alongside co-working and office space. It has four existing locations in London with plans to open more across the city.
Consistent with Workspace’s strategy, validated by independent market research, of targeting London’s creators, makers, innovators and disruptors, Workspace has also made a £3 million strategic investment in Qube for a minority equity stake, including board observer rights.
As part of the agreement, Qube will build a new flagship creator hub and community at The Old Dairy in Shoreditch. The space will be transformed into a world-class environment for music and content production, adding vibrancy to The Old Dairy and giving Workspace’s customers access to Qube’s specialist creative facilities. Workspace’s £3 million equity investment will be largely reinvested into the bespoke fit-out, alongside a £3.45 million landlord contribution to deliver studios built to Qube’s premium specification.
Workspace’s minority equity stake in Qube lays the foundation for a meaningful long-term strategic partnership. Through this partnership model, Workspace and Qube will collaborate to build a scalable specialist offer for music and content professionals across London with the potential to expand across Workspace’s wider portfolio, and possibly beyond.
Workspace is uniquely positioned to take advantage of the trend towards greater specialisation in the flex market in this targeted, capital-light way, as its freehold ownership model and “blank canvas” flexible offer allow it to work with specialist operators to tailor spaces to their specific needs. In addition, Workspace’s buildings are located in the areas these specialist SMEs want to work, and are filled with thousands of other dynamic, growing SMEs across a range of industries.
Lawrence Hutchings, CEO of Workspace Group, commented:
“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. 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. This is a positive step forward in our plan to be the go-to home for London’s creators, makers, innovators and disruptors, and we can’t wait to get started.”
Amin Hamzianpour, Co-Founder and CEO of Qube, commented:
“Partnering with Workspace marks an exciting next chapter for Qube. 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. This partnership reflects the growing importance of the creative industry to London’s economy and provides a strong foundation for Qube’s continued expansion across the city.”
