A new joint venture between hospitality operator Bob W and Osborne+Co Investment Management has launched a £120 million equity raise to buy assets for conversion into serviced apartments.
The joint venture aims to acquire and repurpose 20 to 25 hotel and office buildings into 1,500 to 2,000 short-term serviced apartments and is targeting a GDV of over £400 million for its initial development pipeline.
The £120 million value-add fund will target key European markets including Ireland, Portugal, Spain, Poland and the UK. The partnership – which is actively seeking an investment partner – expects its first assets to be operational within 18 months.
Bob W currently operates across 29 European cities. Osborne+Co has delivered over £6 billion in projects as a developer and landlord across 25 countries.
What they said
Niko Karstikko, CEO & co-founder of Bob W said: “Together, we aim to transform underutilised spaces into vibrant, high-quality serviced apartments that meet the evolving needs of modern travellers. This partnership will enable us to deliver not only significant value for stakeholders, but also an authentic five-star hospitality experience for our guests as we continue to build a pan-European household name as the new elevated standard of hospitality for the next generation of travellers.”
Denis McGowan, partner at Osborne+Co added: “Partnering with Bob W on this venture is a remarkable opportunity to harness the current surplus and availability of assets in the office sector and underinvested assets in the hospitality sector in the UK and key European markets. By repurposing hotels and office buildings into high-quality, sustainable serviced apartments, we will meet the growing demand for flexible and premium accommodation. We look forward to leveraging our development capabilities and Bob W’s hospitality excellence to create spaces that resonate with today’s discerning travellers and set new standards in this rapidly-growing industry.”
Rishi Khurana, co-founder at Osborne+Co Investment Management added: “The joint venture is seeking an investment partner to create a pan-European platform to deliver attractive returns in a highly defensive asset class. We have seen recent exits in both single assets and operational platforms that demonstrates the liquidity of the serviced apartment asset class.”