Office Space in Town and Forum Partners launch second serviced office JV
Serviced office provider Office Space in Town has launched a second joint venture with Forum Partners, a global real estate investment and asset management firm.
The joint venture will acquire commercial office buildings to be converted into serviced offices in key central London locations.
Forum Partners and Office Space in Town have committed over GBP30 million in the first round of equity and are in advanced negotiations with blue-chip property and financial investors for further funding commitments, which could raise the platform's equity capacity to GBP100 million.
The joint venture's focus is primarily in London's zone one, with a particular emphasis on the West End, Midtown and City fringes. The strategy targets commercial properties in excess of 25,000 square feet and within a four minute walk of a tube station or rail links, which can be vacant or need refurbishment. The partners are in discussions regarding two City office buildings, which are likely to be the venture's first acquisitions.
The properties in the first joint venture, launched in 2012, consist of three London serviced offices in Liverpool Street, St Pauls and Waterloo.
The UK's serviced office market has enjoyed robust growth, with London, the clear leader, accounting for some 25 per cent of the UK serviced office sector. Average serviced office rates in the capital recently rose to levels not seen since the highs of 2008.
Reports cite London as having the largest number of serviced offices globally, close to 10 per cent, with New York the next largest market.
Giles Fuchs, co-founder and CEO of Office Space in Town, says: "We are actively looking to buy office buildings; we have the funding in place to quickly build a strong portfolio as well as a strong track record as both operators and investors in the serviced office sector."
Andrew Walker, managing partner and co-founder of Forum Partners, says: "We had a fantastic experience working with Office Space in Town on our first joint venture and we are very pleased to back this second initiative. The serviced office market has been performing well and provides excellent investment opportunities."
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