Osborne+Co launches investment management business to target pan-European development and value add opportunities
Despite economic headwinds stemming from Covid-19, directors of Osborne+Co – a UK-based global property development and investment group - have launched Osborne+Co Investment Management (OCIM) to target emerging value add and development opportunities in the UK and Europe.
OCIM intends to focus on becoming a natural investment partner for globally-focused high-net-worth-individuals (HNWI’s), family offices and pension funds in Europe and the UK who are looking for risk adjusted European Real Estate exposure. The OCIM team will be supported by a best in class team at Osborne+Co. with whom they will partner with for co-investment and delivery as well as look to broaden their remit to invest with other developers and landowners.
Osborne+Co co-founder Conor Osborne and Director Rajesh Budhrani were joined by Rishi Khurana, formerly at Sidra Capital, to set up OCIM and create a firm focused on intelligent underwriting and meaningful co-investment. The London based firm looks at medium term investment opportunities where the strong in-house delivery capability offered by its sister company can be uniquely leveraged to generate superior value and returns for investors. The team have already closed three transactions this year with total Gross Development Value of over GBP300 million and are confident of offering excellent returns despite the challenges presented by Covid-19.
“We have the agility of a dynamic start-up alongside the backing of an established sister company Osborne+Co,” explains Conor Osborne, co-founder and managing partner, OCIM. "OCIM has a global perspective with offices in ten cities in eight countries with a solid track record of investing in over 25 cities across the world. Our investment focus will initially be to target core development and value add opportunities across the UK and Europe where we believe we are seeing an emerging disconnect in fundamentals and we anticipate value buying opportunities.”
Explaining the unique expertise that the partners bring to the table, Osborne adds: “The OCIM team brings a unique proposition with deep expertise across property development, construction and finance. The intersection of skills allows us to look at a far wider universe of potential investment opportunities, situations and environments. Given our integrated knowledge and experience, we can navigate more complex transactions and secure investments with market-beating returns.”
Earlier this year, OCIM acquired two value add commercial office assets in Milton Keynes with a view to repositioning them as well as a 10-acre site in Dublin’s Sandyford sub-market that is currently in its final pre-planning stages for a significant commercial office scheme. In addition to taking over management of several Osborne+Co investments and with a number of other opportunities in the pipeline, OCIM expects to grow the gross development value of its assets and projects under management to beyond GBP1 billion in the next 12 months.
Covid-19 provided an opportunity to innovate, reveals Rishi Khurana, co-founder and managing partner, OCIM. “We had to rethink asset classes and allocations. We realised we had to redefine how and where we focused on commercial offices as an asset class due to ongoing uncertainty around how the workspace will be used in a post pandemic world. We took the house view to reimagine our underwriting and pushed further than ever before the stress testing for a smaller and more selective spectrum of investment opportunities.
"We have adapted our criteria to reflect the potential for a new reality but also to reflect dynamic investor preferences, looking increasingly at shifting the weighting of our asset portfolio from predominantly office commercial property to more mixed-use schemes, for a more balanced and diverse risk and return profile."
“For us, alignment and transparency are key, as we co-invest alongside our partners," adds Khurana. "OCIM endeavours to have an entrepreneurial mindset where we succeed when our investment partners succeed, focusing more on a performance-based model’