Underperforming real estate investment trust Workspace Group (WKP) has found itself back in Saba’s sights, after the hedge fund’s initial attempt in January 2026 was rejected.
In an RNS released on Friday (8 May), the trust confirmed it had received a requisition from Vidacos Nominees Limited a/c 2062 on behalf of Saba Capital, requesting the five non-executive directors be removed and four new ones appointed at the upcoming AGM on 23 July 2026.
The US hedge fund has increased its stake in the trust from 13.5% in January to 18.2%, according to the RNS.
In January, Saba had initially proposed a managed wind-down of the company over 12 months, citing the “persistent discount” and structural impediments to managed creation.
See also: Saba Capital calls for managed wind-down of Workspace Group
“Having properly considered Saba Capital’s proposal, the board concluded, and notified Saba Capital, that the proposal is not achievable, nor will it maximise value for shareholders, and so is not in the best interests of the company and its shareholders as a whole,” the RNS said.
Richard Williams, senior analyst at QuotedData, commented: “I can only hope it [Saba] has moved away from this idea, because that timeframe was fanciful at best.”
Additionally, “the plan to sell assets into a market that is devoid of activity due to the heightened geopolitical and economic uncertainty, whilst also revealing its hand as a ‘forced seller’ is preposterous”.
While the portfolio has struggled to perform, delivering negative total returns over the past one, three, and five years, according to data from FE fundinfo, the board “firmly believed in the company’s existing strategy” and advised shareholders to take no action.
Oli Creasey, head of property research at Quilter Cheviot, said that trust was in some ways a “typical Saba target” due to the 50% discount to NAV.
“However, the operational structure of the business makes it slightly different – the company is a recognised brand [its adverts make regular appearances on the London transport network] and is estimated to have over 300 members of staff.”
This is part of why the initial demand in January was so poorly received, according to Creasey, as the staff and value of the brand were not properly reflected in the NAV.
“Saba’s 18% position means that the hedge fund is unlikely to be able to pass this AGM vote on its own,” the Quilter analyst noted.
“However, there is a potential king-maker on the shareholder register – Nicholas Roditi, formerly George Soros’s ‘most trusted advisor’, owns 29% of the company and his vote could swing the vote to very close to 50%, meaning Saba would only need a handful of other investors to take their side, or simply abstain from voting to reach a simple majority.”
While the shareholder has not publicly stated their opinion, Quilter noted they added 1% to their position in January, shortly after Saba’s letter, after years of holding the position unchanged.
See also: Aberdeen and Saba reach deal on Herald
