Mon, 08 Nov 2021 | BUSINESS SALE
UK flexible workspace operator BizSpace has been acquired by Sirius Real Estate for £245 million. The deal is based on an enterprise value of £380 million and reflects around a 5.4x multiple of BizSpace’s gross rental income of £45.5 million for the year ending December 31 2019.
Sirius Real Estate is a German-focused firm which owns and operates branded business and industrial sites offering both flexible workspaces and conventional work space across Germany. The company views the acquisition of BizSpace as a strategically valuable opportunity to replicate its German business model in a different marketplace.
The company believes that the takeover provides it with a high-quality portfolio in an attractive market that offers organic growth potential for rental income. The firm says that the acquisition offers its shareholders an "opportunity for significant value creation and further long-term growth potential".
BizSpace was founded in 2000 and has grown to a network of 72 sites across the UK. Its regionally diverse portfolio is split between 74 per cent light industrial sites and 26 per cent out-of-town office space. In its 2019 reports, the company registered a £5.6 million post-tax loss on its £45.5 million gross rental income, with total assets valued at £140.9 million and total liabilities of £151.4 million.
Despite this loss, Sirius says that the firm has performed strongly during the COVID-19 pandemic, with its trading performance demonstrating the resilience of its business model. The deal is set to be funded through a combination of existing cash resources, a €75 million revolving credit facility and a proposed fundraising expected to generate around £135 million.
Commenting on the deal, Sirius Real Estate CEO Andrew Coombs 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."
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