Fully let scheme is part of a wider £130m project developed by Scape and U+I
- What Investec Realis has acquired The Office in Circus Street, Brighton from Scape
- Why Fully let 33,000 sq ft scheme is part of a wider £130m student-led project developed by Scape and U+I
- What next Realis and XLB, as asset manager, will undertake an ESG-focused refurbishment of the property
Investec Bank, through its equity strategy Investec Realis, has purchased The Office, a 33,000 sq ft office development in Brighton from Scape.
The six-storey, city centre building was developed by U+I and Scape in partnership with Brighton and Hove Council, as part of a wider £130m redevelopment of the site on 5 Circus Street which was previously occupied by the Municipal Market.
The broader scheme includes 450 student bedrooms, 142 build-to-rent (BTR) apartments, office space and a dance space.
The student accommodation was marketed for sale by Scape in November 2023 with an asking price of £67m, as revealed by Green Street News. Earlier, fund manager M&G purchased the residential blocks from U+I, which comprise one and two bedrooms.
Designed by architects Shedkm, The Office was completed in 2021 and is currently fully let. Green Street News understands that the asset fetched around £12m.
Realis and XLB, which will serve as asset manager of the property, will undertake an ESG-focused refurbishment programme. It will include amenity upgrades and aim for a BREEAM Excellent certification.
William Poole, partner at XLB, said: “Brighton is a market we have been targeting for some time now and we are glad to have acquired The Office at Circus Street.
“Grade A supply pipeline is limited and we hope to see continued rental growth across the city. The building benefits from excellent fundamentals, high-quality occupiers, and we are excited to continue our partnership with Investec Realis.”
Tom Punch, real estate equity specialist at Investec, added: “We continue to see a unique buying opportunity within prime offices due to a mismatch in soft investment asset pricing and strong occupational market performance in select locations. The acquisition fits our core strategy in offices and we look forward to working with XLB to deliver on our shared vision for the asset.”
Investec Realis and XLB were advised by Savills and Shepperd & Wedderburn. Knight Frank represented Scape on the transaction.
The transaction marks the expansion of Realis and the second investment in partnership with XLB Property, which will act as asset manager of the property.
In February, Realis acquired the CityGate building in Manchester for a reported £14m. The office building was refurbished in 2016 and is now 90% occupied, mainly by the government and Barclays.
The deal is Realis’ second in the office sector. Investec believes that recent repricing has created an attractive entry point into the regional office market.
Investec launched Realis last March with the aim of providing investors with deal-by-deal access to institutional-quality UK real estate. It has set out to deploy £250m – with leverage – within two years, delivering value-add and opportunistic returns.