Leading London office provider Office Space in Town (OSiT) has today announced that it has successfully acquired Brightbay Real Estate Partners’ 80% share in their London Serviced Office portfolio. The joint venture between Brightbay (previously RDI REIT P.L.C.) and OSiT was established in 2018. The portfolio is now owned fully by OSiT.
The buyout marks a major milestone for the future trajectory of the business, unleashing OSiT’s plans to increase the portfolio value to £500m in the next four years and to £1billion by 2029. OSiT is actively seeking new buildings in prime London locations to purchase to meet rising demand for flexible workspace, as well as partners to support its ambitious growth plans.
The deal follows a period of exponential growth for the sector following the COVID-19 pandemic, which has seen demand for flexible office space up 82% on pre-pandemic levels. In fact, as workers return to offices, 41% of occupiers are expected to increase use of flexible workspace as part of a post-COVID work strategy.
In light of this, defining an industry-wide valuation standard for flexible offices remains a major priority for the company in the next six months, with talks ongoing between OSiT and leading academics Professor Neil Dunse and Professor Michael White.
RDI REIT acquired an 80% stake in the portfolio of four central London OSiT assets in 2018 from Forum Partners, Kailong Group and OSiT. The deal marked a continued move by mainstream institutional investors into the flexible office market.
OSiT was advised by lawyers at leading City law firm RPC, led by Tom Purton.
Giles Fuchs, Chairman of Office Space in Town, said: “This deal marks the beginning of an incredibly exciting chapter in OSiT’s growth. This new phase will enable the OSiT team to deliver on our ambitious vision for the future, including our active search to acquire new buildings and plans to grow the portfolio value to £1billion.
“Our partnership with Brightbay showcased just how much value and potential institutional investors see within our rapidly growing sector and in OSiT as a business. I would like to thank the entire team, including Stephen Oakenfull and Adrian Horsburgh, for such an exciting journey.”
Simon Eastlake, Managing Director of Office Space in Town, commented: “Full ownership of the OSiT portfolio marks an important milestone that now sets us on track for a new phase of exciting growth.
“We are actively seeking new buildings and partners that share our vision and enthusiasm for the sector. We’re incredibly excited about what the future holds next for OSiT.”
Tom Purton, Head of Commercial Team at RPC, commented: “We were delighted to act for OSiT on what is a very significant and transformational deal for them. I have known and acted for OSiT for a number of years, but this was the first deal we have done for them since my move to City law firm, RPC in 2021.
“OSiT is a great business, has a very strong management team, a unique culture which inspires huge loyalty amongst its workforce with market leading serviced offices. I have no doubt this deal will help take the business to the next level”.