BE Offices concludes £84m refinancing with HSBC
BE Offices today announces it has concluded a £84m refinancing package with HSBC.
This new financing agreement means that BE has extended the period of its fixed debt to five years and provides the business with additional cash to fund future growth and expansion.
Simon Rusk, BE’s Finance Director and co-founder, said: “This is a major step forward for the company. Not only does the refinancing provide us with a solid foundation and security going forward, it also releases significant cash to fund our planned expansion over the next few years.
“At the same time, it reflects extremely positively on the business and demonstrates that our ability to provide a wide range of flexible workspace products to an increasingly diverse customer base is a business model that a major international bank like HSBC recognises and is prepared to back.”
Over the past two years BE has successfully grown the business to 19 centres providing around 800,000 sq ft of flexible workspace. It has expanded both organically and by acquisition. Last November BE acquired Headspace that took it into the tech, media and creative industries sectors for the first time. It also launched BESpoke last Autumn which is aimed at the corporate market.
David Saul, BE’s Managing Director and co-founder, commented: “We regard this refinancing as a major endorsement of the business and its future. We believe BE is extremely well placed to take advantage of the fast-growing flexible workspace market. BE has a quarter of a century of successful and profitable experience in this market which we will bring to bear as the sector enters the next phase of its expansion.”
Mr Rusk concluded: “This is a major milestone in BE’s development. We are probably in the strongest financial position since the company was launched 25 years ago and at a time when this stability gives us an incredible platform to take BE to the next phase of its planned growth.”