Bizspace has teamed up with Electra Partners to launch what it claims will be the UK’s first “managed workspace” fund.
The £50m Jersey-based vehicle will be backed by £1m from Bizspace and £15m from Electra, with the remaining debt provided by Barclays.
Bizspace managing director Neil Corderey said: “This is the first time anyone has had a managed workspace fund. It is another string to our bow and allows us to expand faster without going back to shareholders.”
The fund’s asset management will be run and branded by Bizspace, which will earn a 0.8% management fee, plus performance bonus. Three Bizspace directors Corderey, Larry Lipman and Paul Davis will share 25% of the fund’s performance bonus.
The announcement of the joint venture came just days after Bizspace’s major shareholder Treffick raised its shareholding to 24%, causing speculation about a takeover.
Treffick, owned by veteran property entrepreneur Jack Petchey, has bought nearly 5m shares in Bizspace, raising its stake by 4%.
However, Collins Stewart analyst Selwyn Jones said: “Treffick has been a fan of Bizspace for some years now and is often prepared to go to the 29% maximum in its shareholding so it difficult to say what its intentions are. In our view, Bizspace still offers value.”
Bizspace’s share price was up nearly 4% on Wednesday as the market digested both Treffick’s purchase and the fund launch.
