Sidra Capital acquires The Bower Office in the UK
February, 2023
Sidra Capital announced the acquisition of The Bower office in Stockley Park, UK for £73.75m (circa 7% yield) from Clearbell Property Partners II LP (Clearbell) – a fund managed by Clearbell Capital LLP together with PATRIZIA – a leading partner for global investment in real assets.
The Bower has set a new ESG benchmark for one of the UK’s premier business parks following a complete refurbishment. The asset is currently entirely led and occupied by Canon Europe.
The sellers transformed the space into a Grade A office achieving a BREEAM rating of “Excellent” and EPC “A”, making its ESG credentials one of the best in the South East and Sidra’s UK portfolio.
Commenting on the acquisition, Hani Baothman, Chairman of Sidra Capital said: “We are delighted to have acquired Canon’s HQ in Stockley Park UK, the Property complements our ESG strategy and our portfolio of quality assets leased to quality tenants. ESG has been a core theme of Sidra’s investment thesis as evidenced by the numerous BREEAM-rated properties it has curated.”
He added: “Sidra’s portfolio includes Electric heating rather than Gas reliance, Photovoltaic technology, and the harnessing of ground source heat energy. Sidra’s commitment to acquiring best-in -class assets is rewarded by tenant loyalty and the mutual drive for continuous ESG improvement.”
Baothman further emphasized the company’s ability to complete the transaction in the current economic environment reflects Sidra’s long-term commitment to the UK real estate market as well as its ability to provide vendors with certainty and trust when it comes to execution. “Sidra succeeded in emerging as one of the UK’s largest privately held HQ owners to Global brands, including Hilton, Coca Cola, Atkins, and Countryside Plc, and now Canon as its partner/tenant,” he concluded.
Dominic Moore, Head of Asset Management & ESG Director, Clearbell, said: “Now more than ever, businesses expect two things from their offices: high specification and strong sustainability ratings – and they don’t want to compromise either. The ESG credentials and specification of The Bower makes it a strong institutional building – add in the excellent Canon covenant and the lease length and the asset provides a sound investment in a turbulent market.”
On his part, Phil Irons, Managing Director of Transactions, PATRIZIA said: “This deal is the result of a business plan set to drive the value of The Bower through a combination of ESG-linked capex enhancements and a leasing strategy to attract a world-renowned brand, which we have successfully achieved in Canon. Despite challenging market conditions, our successful exit validates our strategy and is an encouraging sign that buildings with strong ESG credentials will continue to attract strong investor interest.”
