Saba Capital doubles stake in Workspace Group to 10%

Table of Contents

What’s happened

On 29 October 2025, Workspace Group published a regulatory notification (RNS) stating that Saba had crossed the 10 % threshold of voting rights: it now holds 10.020260 % of voting rights in Workspace. (Investegate)
- Of that 10.020260 %, 0.162330 % relates to direct share-ownership (312,182 shares) and 9.857930 % via financial instruments (a total-return swap expiring 28 Nov 2025). (Investegate)
- Previously, Saba held 5.247582 % of voting rights in Workspace (0.148912 % shares + 5.098670 % via financial instruments) so this is nearly a doubling of its exposure. (Investegate)
Announcement summary: Saba “doubles stake in Workspace Group to 10%” from ~5.2%. (//www.investmentweek.co.uk/)
Workspace’s business update shows some potential headwinds: for the quarter ended 30 Sept 2025, like-for-like occupancy fell 2.3% to ~80.0% and rent roll dropped ~3.2% to £107.1 m. (MarketScreener)

Why it matters

For Workspace Group

An activist investor (Saba) taking a >10% stake signals potential pressure on the board or operations. Saba may push for strategic change, improved returns, capital allocation changes, stronger asset management or sale of under-performing assets.
Given the occupancy and rent roll declines reported by Workspace, the timing may reflect Saba seeing value or opportunities for improvement.
The fact that most of Saba’s stake is via financial instruments suggests a leveraged or synthetic exposure rather than straightforward long-term share ownership — might indicate a tactical position with activism potential.

For Saba Capital

Saba has a track record of building positions in UK investment trusts and listed vehicles, often with the aim of unlocking value via change or catalysing boards. (QuotedData)
The nearly doubling of the stake shows conviction in Workspace’s prospects (or at least in the opportunity for value creation).
The instrument structure (majority via total-return swap) allows Saba to gain economic exposure without necessarily holding the underlying shares immediately.

For the market

Other investors may take note: a large activist stake often increases scrutiny of the target’s strategy, capital structure and future performance.
It could prompt other shareholders or the board to act proactively to anticipate changes (e.g., asset sales, dividend policy, cost cuts).
Given real estate (and REITs) is under pressure from occupancy/rent challenges and interest-rate/inflation environment, the move may highlight where pressure points are.

Key commentary & analysis

In its announcement, Workspace flagged the occupancy drop and rent roll decrease, which suggests operational pressure. This could be seen by Saba as a turn-around opportunity.
The use of a total-return swap (TRS) by Saba indicates synthetic exposure: this means Saba is exposed to upside/downside economic returns without necessarily owning the underlying shares, and this may point to flexibility in how Saba plans to engage. (see the breakdown: 9.85793% via instruments) (Investegate)
Historically, Saba’s approach has shifted from high-profile confrontational activism to a somewhat more behind-the-scenes engagement — which may signal less public acrimony but still meaningful pressure. (QuotedData)
Because Workspace is a UK REIT (focused on London & South East workspace/studios etc), the macro environment (office demand, flexible workspace, occupancy trends, cost pressures from inflation/energy) is very relevant — the activist’s timing likely reflects a mix of valuation gap + operational stress + potential for asset-management gains.

What to watch going forward

Will Saba seek representation on the board of Workspace, or push for a formal strategic review (e.g., asset disposals, changes in capital structure, increased dividends or share buy-backs)?
How will Workspace respond publicly? Does the board issue a letter to shareholders or engage with Saba? Often companies adopt defensive strategies (e.g., setting out the plan to improve returns) once large stakes are disclosed.
How much of Saba’s exposure is short-term speculation vs long-term commitment? The use of TRS means there may be optionality for Saba to scale up or exit exposure depending on developments.
Will Workspace’s operating performance turn around? If occupancy & rent-roll continue to fall, this could reinforce the activist’s case — conversely, improvement might reduce the activism risk.
Market reaction: how will other shareholders respond? Will there be support for the board or demand for change?
Regulatory/disclosure risks: crossing 10% is a signal point in UK listing rules — further moves beyond 15% or 20% may trigger deeper reactions/requirements.

Here are case studies and commentary on the latest move by Saba Capital Management, L.P. (“Saba”) doubling its stake in Workspace Group PLC (WKP) to ~10 % — what it signals, and how it fits into the broader activism playbook.

Case Study 1: The WKP Stake

What happened

On 29 October 2025 Saba notified that it holds 10.020260 % of voting rights in Workspace Group. (Investegate)
- Breakdown: 0.162330 % via direct shares (≈312,182 shares) + 9.857930 % via financial instruments (a total-return swap expiring 28 Nov 2025). (Investegate)
- Previously: Saba held ~5.247582% (0.148912% shares + 5.098670% via instruments). (Investegate)
Earlier filings (Aug 2025) had shown ~5.25% stake. (MarketScreener)
The announcement of the doubling was flagged in the press: “Saba Capital doubles stake in Workspace Group to 10%” (from ~5.2%). (//www.investmentweek.co.uk/)

Why it matters

Doubling a stake to 10% is a clear signal: Saba is building meaningful exposure in the company and is likely to expect a seat at the strategic table (if not formally at the board) or will push for changes.
The heavy use of derivatives/instruments (rather than direct share ownership) suggests a flexible, perhaps opportunistic position: exposure to performance while limiting some of the direct responsibilities and capital outlay.
For Workspace, a UK-REIT focused on flexible workspace in London/SE, this raises the stakes: an activist investor entering a higher position typically triggers market scrutiny, potential board engagement or strategy review.

Key contextual factors

Workspace reported a business update for Q2 (ended 30 Sept 2025) showing like-for-like occupancy fell ~2.3% to ~80.0% and rent roll dropped ~3.2% to £107.1 m. (Investegate)
This operational softness could be seen by Saba as a turnaround opportunity — either under-leveraged assets, hidden value or management re-execution.
Real estate in the UK, especially flexible workspace, is under pressure from macro headwinds (higher rates, slowing demand, cost inflation) — meaning activist investors may see value gaps.

Implications

Saba may engage Workspace’s board/management on: asset disposal/redeployment, cost base improvement, capital structure/return of capital (dividends/share-buybacks), or broader strategic repositioning (perhaps repurposing some space, enhancing occupier mix).
The board of Workspace will likely (or should) respond — either pre-emptively by setting out a strategy update, or defensively by signalling continuity. Market watchers will watch for: board changes, shareholder letters, announcements of review.
Other shareholders may re-assess the company: if an activist with 10 %+ publicly holds, the “threat of change” often raises trading interest, possibly influences share price.
For Saba, this fits into a broader pattern of UK activism: building stakes in companies/trusts with under-performance or value gaps and then pressing for change.

Case Study 2: Saba’s Broader UK Activism Playbook

While the WKP case is specific, the move makes more sense when viewed alongside Saba’s broader activities in the UK.

Saba has been active in targeting UK investment trusts and closed-ended funds, often complaining of structural issues such as persistent discounts to net asset value (NAV) and under-performance. (AInvest)
Example: Saba targeted seven UK investment trusts with significant holdings (19-29%) and sought board changes. (QuotedData)
Saba’s statement: “Performance across the trusts has been so awful… we believe the current boards and investment managers have failed to perform…” (QuotedData)

What this means in relation to Workspace

Though Workspace is not an investment trust, the same “value-unlocking” mindset likely applies: Saba perceives a gap between current share price/asset value and potential, and believes engagement can close that gap.
Saba’s use of instruments rather than direct shares in many cases implies they want flexibility and optionality. For example, in the WKP stake 9.85793% via derivatives.
The presence of an activist investor with significant stake may force the company’s hand (or accelerate action) even if formal board changes are avoided.

Comments & Analysis

From open filings: The fact of crossing the 10% threshold triggers certain regulatory disclosures and signals seriousness.
Analysts are pointing out that, while the press release of the doubling is short, the implications are bigger: the company is now under a “watching” status.
One commentary: “A doubling of stake to 10% from ~5.2% in a company with operational headwinds is a red flag and a potential opportunity – the activist sees change required.” (paraphrased from coverage) (//www.investmentweek.co.uk/)
The broader narrative: Saba’s activism in the UK (traditionally quieter than in the US) is ramping up — this move fits into that. It may mean more aggressive shareholder engagement for UK REITs or companies with operational/asset value gaps.
Some see risk: Activist stake may lead to short-term focus, pressure for asset sales or cost cuts which might conflict with long-term strategy. Others see opportunity: The presence of an engaged shareholder could accelerate value creation that was otherwise dormant.

Summary Table

Item	Detail
Target company	Workspace Group PLC (WKP)
Investor	Saba Capital Management, L.P.
Stake	~10.02026% of voting rights (0.16233% direct shares; ~9.85793% via instruments) (Investegate)
Previous stake	~5.247582% (0.148912% shares + 5.098670% instruments) (Investegate)
Operating context of WKP	REIT owning/operating workspace in London/SE; recent occupancy & rent roll declines (Investegate)
Strategic implication	Indicates Saba sees value gap; possible push for strategic review, improved returns, capital deployment changes
Fit with Saba playbook	Consistent: build meaningful stake, often via instruments, then pressure for change in UK listed companies/trusts (QuotedData)

Take-aways for investors / stakeholders

If you own shares in Workspace, the presence of Saba may merit closer monitoring of announcements: any board/management commentary, strategic review, disposals or capital return proposals may be accelerated.
If you are considering investing in WKP, the activist stake may reduce downside risk (via potential catalyst) but also may bring volatility (if activists push asset sales or restructuring).
For those in the UK REIT sector more broadly, this may signal that activists are seeing opportunity in companies that have structural/operational headwinds. So, firms with weak metrics may become targets.
For company management/boards, this acts as a reminder: in a market where performance is under scrutiny, passive continuity may no longer suffice — value creation must show.
For regulators/market watchers: activists using derivatives and instruments to build substantial economic exposure (without immediate direct share ownership) may raise governance/monitoring questions.