Business parks specialist Sirius Real Estate has agreed to acquire UK flexible workspace landlord BizSpace from Värde Partners for £245 mln (€285 mln) in cash.
The deal for the regional workspace firm, which manages 72 sites across the UK, is based on an enterprise value of £380 mln. Sirius will also take on BizSpace's debt of £146 mln.
Sirius will execute the deal by acquiring Helix Investments, the holding company of the BizSpace business. The acquisition will be funded by new and existing debt, plus the proceeds of a £135 mln fundraise.
Since its founding in 2000 BizSpace offers light industrial, workshop, studio and out of town office units to a wide range of businesses across the UK. Split on a per square foot basis, its portfolio comprises 74% light industrial and 26% out of town office.
Conditional on capital raise
Sirius' fundraising plans include share placements to instutional investors in the UK and South Africa, plus an offer to retail investors in the UK through an online marketplace. The acquisition is conditional on the capital raise.
The board of Sirius described the acquisition as an opportunity to replicate its German business in another European geography, exploiting the 'under-served wider UK market'.
BizSpace’s existing management team, including John Spencer (BizSpace CEO), Tariq Khader (BizSpace financial director) and Mo Jiwaji (BizSpace commercial director) will remain with the business to drive the operations.
The acquisition will increase Sirius’ gross asset value to around €1.9 bn, and its rent roll to in excess of €153 mln.
Andrew Coombs, Sirius CEO, said: 'We are very happy to announce the acquisition of a high-quality and well diversified portfolio of assets, in a highly attractive and growing market.
'The acquisition of BizSpace brings with it an experienced and enthusiastic management team that we believe will be a good fit with the culture of Sirius’ current management team and I look forward to building on the existing relationships between our businesses.
'The transaction provides an opportunity to enter a new geography at scale and extends our successful strategy to target highly strategic locations and assets in order to generate sustainable and growing returns on behalf of investors.'
