Sirius Real Estate Limited has
agreed to acquire Helix Investments Limited (the holding company of the
BizSpace business) from Värde Partners for a cash consideration of c.£245
million, based on an enterprise value of £380 million.
BizSpace is a leading provider of regional flexible workspace,
offering light industrial, workshop, studio and out of town office units to a
wide range of businesses across the UK.
The board of directors of the
Company believes the acquisition of BizSpace represents a highly attractive and
strategically important opportunity that allows Sirius to enter, at scale, an
under-served wider UK market with a one-step acquisition of an established
platform.
Furthermore, the Board believes that the Acquisition presents an
opportunity for the Company to replicate the success of the Sirius model in
another European geography, providing Sirius’ shareholders with an opportunity
for significant value creation and further long-term growth potential.
The Acquisition consideration
will be funded by a combination of new and existing debt together with the
proceeds of a proposed fundraise, which is expected, in aggregate, to raise
gross proceeds of c.£135 million, comprising a non pre-emptive placing of new
Ordinary Shares in the Company to institutional investors including in the UK,
a non pre-emptive placing of new Ordinary Shares in the Company to selected
qualified investors in South Africa and an offer of new Ordinary Shares in the
Company to be made on behalf of the Company by PrimaryBid Limited on its online
platform (which will provide retail investors in the UK with an opportunity to
participate in the Capital Raise).
Together, the total number of new Ordinary Shares to be issued pursuant to the Capital Raise will not exceed 105,281,686 new Ordinary Shares, representing up to 10% of the Company’s issued share capital as at the date of its most recent notice of annual general meeting. The number of Offer Shares, and the price at which the Offer Shares are to be issued will be announced by the Company at the close of a bookbuild process.
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.
Since its foundation in 2000, BizSpace has grown its network to
72 well-located sites, with a GAV of £377m as at 31 August 2021.
