Bizspace is undergoing an ambitious plan to triple the size of its business.
The group was bought by Private equity firm Värde in 2015 in a £138m deal and is almost halfway through a five-year plan to scale it up ahead of a sale or initial public offering.
Bizspace, which already owns the UK’s greatest amount of flexible space in terms of square footage, is scouting for individual centres as well as portfolios.
The group will also develop its own buildings. To initiate the process, Bizspace appointed Pure Offices founder Nick Smith earlier this year as development director.
The company is currently in the process of acquiring six new business centres throughout the UK and three sites for new-build development.
“We have got the funding in place to carry out this growth strategy,” chief executive Gareth Evans commented. “The flexible workspace sector is obviously very buoyant and is at the heart of a revolution in the office market that is here to stay, so we think the timing is perfect.”
The company also has plans to rebalance its portfolio, which currently totals 97 centres mainly in the regions and covers 6m sq ft. The final aim is to have a greater focus on the Midlands and southern markets.
“The focus over the coming few years is to balance the portfolio more towards the Midlands and the south,” Evans explained. “In terms of legacy portfolio, we will look to upscale it and recycle out of some of the assets we can’t refurbish.”
In the first two years under Värde’s ownership, particularly in the wake of the Brexit vote, Bizspace’s expansion has been prudent. Nevertheless, growth is a priority and Bizspace said it looked to take advantage of the increasing demand from flexible office space occupiers.