MWB Business Exchange Acquires Stanhope Business Centres for £11.6M

March 3, 2008 - PRLog -- MWB Business Exchange Plc, the UK's second largest provider of serviced office space (http://servicedoffices.mwbex.com/), today announces that it is acquiring the entire issued share capital of Stanhope Business Centres Ltd ('Stanhope') for £11.6m, inclusive of approximately £1.8m of net cash. The acquisition is being satisfied through a new £13m bank facility.
Stanhope, which was founded in 2003, operates two successful five-star serviced office buildings (http://servicedoffices.mwbex.com/) in London's Covent Garden with a combined space of 43,500 sq ft and a total of 427 workstations and eight meeting rooms (http://meetingvenues.mwbex.com/).
The two buildings are in Chandos Place and Floral Street, both of which are held on long occupational leases expiring July 2019 and May 2021 respectively. Both properties have consistently achieved occupancy levels of approximately 90% over the last two years and currently generate annual revenues of £4.7m and an annualised EBITDA of £1.7m.
The acquisition forms part of Business  Exchange's stated strategy of focusing its expansion within prime areas of Central London that demonstrate high demand for flexible business space from SMEs. Since Business Exchange floated on AIM in December 2005 it has opened, or is in the process of opening a total of 11 centres in Central London in locations of proven demand for the Company's offer.
John Spencer, Chief Executive of Business Exchange, commented: 'The acquisition of Stanhope provides us with two terrific five star serviced office centres in a part of Central London where we have previously not been represented. The centres have been extremely successful since they opened and the Stanhope approach of unbranded buildings fits perfectly into our business model. I firmly believe these will be an excellent addition to our portfolio of Central London business centres, all of which are continuing to perform strongly.'
MWB Business Exchange Plc provides five star Serviced Offices operating a portfolio of over 1,500,000 sq ft of prime office Space throughout the UK, Meeting Venues with over 250 meeting rooms, and Virtual Offices.

Website: www.mwbex.com