Investec REALIS, the equity strategy launched last year by Investec Bank plc, has continued its regional expansion with the acquisition of a prime office asset in central Brighton, in partnership with XLB Property.
The move highlights REALIS’s ongoing momentum in capital deployment amid continued market repricing.
The asset, The Office on Circus Street (main picture), comprises 33,000 sq ft of high-quality workspace and was acquired from developer Scape.
Completed in 2021 and fully let within 18 months – despite pandemic-related headwinds—the building reflects the resilience of Brighton’s Grade A office market and the underlying demand for modern, well-located workspace in the city.
LIGHT-TOUCH REFURBISHMENT
The transaction marks the second collaboration between Investec REALIS and XLB, who will act as asset manager for the property. A light-touch ESG-led refurbishment is planned, with a focus on elevating tenant amenities and achieving a BREEAM Excellent certification.
Brighton remains a highly constrained market for Grade A office space, as new development opportunities remain scarce and existing stock is steadily eroded by conversions to alternative uses.
Despite this, occupier demand has proven robust, driven by the city’s deep talent pool, lifestyle appeal, and growing cluster of knowledge economy firms.
BUYING OPPORTUNITY
Tom Punch, Real Estate Equity Specialist at Investec, says: “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.”
William Poole, Partner at XLB, adds: “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.”
Savills and Shepperd & Wedderburn advised Investec REALIS and XLB on the acquisition.
