Värde Partners Agrees £380 Million Sale of BizSpace to Sirius Real EstateNovember 8, 2021
LONDON – Värde Partners, a leading global alternative investment firm, today announced it has agreed the sale of BizSpace, a leading provider of regional flexible workspace in the UK, to Sirius Real Estate for £380 million.
With 72 locations across Great Britain offering over 4.3 million square feet of industrial, mixed-use and office space, BizSpace is home to more than 3,250 small and medium sized businesses.
Since acquiring the company in 2015 for £139 million in a debt-for-equity swap, Värde has executed a series of initiatives designed to unlock and create value, including acquiring more than 20 sites, disposing non-core assets, completing a nationwide site upgrade plan, and strengthening the management team.
Today, BizSpace is one of the country’s largest flexible workspace providers and is well-positioned to benefit from secular trends in the workspace market, with the vast majority of its portfolio in regional locations convenient for small and medium sized business owners.
“Having successfully grown and repositioned the business, we believe BizSpace is incredibly well-positioned to capitalize on the changing use of commercial real estate. As the nature of workspace use continues to shift, the company is underpinned by a proven operating platform capable of meeting the evolving needs of SMEs,” said Tony Iannazzo, Senior Managing Director at Värde Partners.
John Spencer, Chief Executive Officer of BizSpace, said: “Businesses and employees are increasingly attracted to more flexible arrangements for workspace, and are placing a greater emphasis on convenience and community. BizSpace is well placed to capture the growing demand for flexible workspace and I look forward to working with the new owners as we execute our strategic plan and deliver for our customers.”
The acquisition is expected to close in Q4 2021 and is conditional upon completion of Sirius Real Estate’s capital raise.
Lazard & Co., Limited is acting as financial adviser, Slaughter and May is acting as legal adviser and DTRE is acting as property adviser to Värde Partners in connection with the transaction.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.
About Sirius Real Estate
Sirius is a property company listed on the main market and premium segment of the London Stock Exchange and the main board of the JSE (Ticker: SRRLF). It is a leading operator of branded business parks providing conventional space and flexible workspace in Germany. The Company’s purpose is to create and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve and thrive. Sirius seeks to unlock the potential of its people, its properties, and the communities in which it operates in order to create sustainable impact, and long-term financial and social value.
BizSpace is the UK’s leading provider of regional flexible workspace. For more than 20 years the Company has been providing modern, stylish workspaces with simple, affordable and flexible terms for customers across its portfolio of industrial, mixed-use and office units. By acquiring, repositioning and operating sites in convenient regional locations across the country, BizSpace is able to create value for all its stakeholders. Since 2015, BizSpace has been owned by Värde Partners, a leading global alternative investment firm, which has supported the company’s significant growth.