Värde to sell flexible workspace provider BizSpace to Sirius for £380m

Värde Partners, a global alternative investment firm, has signed a £380 million deal to sell Helix Investments Limited, the holding company of BizSpace, a provider of regional flexible workspace in the UK, to Sirius Real Estate.

The buyer is a property company listed on the London Stock Exchange.

With 72 locations throughout the UK offering more than 4.3 million square feet of mixed-use, industrial, and office space, BizSpace is said to be home to over 3,250 small and medium-sized businesses.

Andrew Coombs — CEO of Sirius Real Estate 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.”

Since the acquisition of BizSpace in 2015 for £139 million, Värde Partners is said to have been executing a number of initiatives to generate value. These include buying of more than 20 sites, selling off non-core assets, and completing a pan-UK site upgrade plan as well as strengthening its management staff.

Presently, BizSpace is claimed to be among the largest flexible workspace providers in the UK.

According to Värde Partners, the company is well placed to profit from secular trends in the workplace market. The vast majority of BizSpace’s inventory is located in regional areas, which are said to be ideal for medium and small business owners.

John Spencer — CEO 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 deal is anticipated to close in the fourth quarter of this year and is contingent on the successful completion of Sirius Real Estate’s capital raising.