TLDR:
- A £400M joint venture has been formed to repurpose old offices and hotels into serviced apartments.
- Osborne+Co and Bob W are seeking an investment partner to raise £120M for a value-add fund.
A new joint venture has been announced in the UK, with developer Osborne+Co partnering with hospitality operator Bob W to repurpose old offices and hotels into serviced apartments. The venture aims to create a portfolio of 1,500 to 2,000 modern apartments with a gross development value of around £400M. They are looking for an investment partner to raise £120M for a value-add fund to facilitate the purchase and conversion of 20 to 25 buildings across the UK, Ireland, Portugal, Spain, and Poland. The first assets are expected to be operational within the next 18 months. The joint venture, managed by Osborne+Co Investment Management, aims to increase the value of existing buildings by converting them into serviced apartments. Bob W, known for its climate-neutral initiatives, will operate the serviced apartments using digital technologies to enhance traveler experience. The partnership plans to transform underutilized spaces into vibrant, high-quality serviced apartments to meet the needs of modern travelers.
The venture has already raised €70M (£59M) in funding and aims to deliver attractive returns in the serviced apartment asset class, which has demonstrated liquidity in recent market exits. By repurposing old stock rather than developing new buildings, the joint venture aims to save embodied carbon and contribute to sustainable practices in the hospitality sector. Overall, this collaboration represents a significant opportunity to revitalize old properties and create valuable assets in growing markets across Europe.
