Workspace and HBOS restructure Glebe subsidiary

REIT Workspace has written down its £166m joint venture Workspace Glebe and restructured the company with lender Lloyds Banking Group’s HBOS.

The small office specialist is buying the 50% it does not own from Glebe Two’s liquidators for £1 and injecting £15m of equity raised from shareholders. HBOS is cutting the debt from £134m to £68m and taking the rest of the writedown.

The first £68m realised as the 1.2m sq ft of assets are sold will go to the bank; Workspace will get the next £15m. Above that, and up to £170m, proceeds will be split 50:50. In the event of more being clawed back, the split will be 70:30 in Workspace’s favour until, and if, the bank gets all of its money back.

It is the latest in a string of HBOS restructurings with the original borrowers. In July the bank restructured Australian listed property trust Valad’s European portfolio.