Investec REALIS acquires Brighton acquisition alongside XLB

Investec Bank Investec Bank plc (“Investec”), a leading international financial services provider announces that Investec REALIS (“REALIS”), the equity strategy that it launched last year, has acquired The Office, a 33,000 sq ft office of high-quality space on Circus Street, in Brighton city centre, from Scape.

The acquisition marks the continued expansion of REALIS and is the second in partnership with XLB Property, who will act as asset manager on the property.

The building, which was delivered in 2021 and achieved full occupancy within 18 months despite Covid-19 headwinds, is currently fully let.

REALIS and XLB intend to undertake a light, ESG focused refurbishment programme, which will include amenity upgrades and achieving a BREEAM Excellent certification.

Brighton has a highly constrained Grade A office supply, driven by a lack of new development and the erosion of existing supply through conversion to alternative uses. At the same time, demand has remained robust, with occupiers attracted by its deep talent pools and high quality of life.

REALIS launched last year following a period of rapid repricing within select parts of the real estate market. Investors benefit from Investec’s established, data-led deal origination platform, which has enabled it to build a c.£3 billion real estate loan book and strong global network of 150+ operating partners.

Tom Punch, Real Estate Equity Specialist at Investec, commented: “We continue to see a unique buying opportunity within prime offices due 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.”

William Poole, Partner at XLB, added: “Brighton is a market we have been targeting for some time now and we are delighted 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.”

Investec REALIS and XLB were advised by Savills and Shepperd & Wedderburn.