China’s KaiLong has invested in a UK serviced-offices company.
Two Office Space in Town (OSiT) London serviced-office joint ventures, worth a combined £160m (€209.2m), have been backed by KaiLong.
The Shanghai-based firm is taking a majority stake in OSiT’s first joint venture, LSOI, replacing Forum Partners, which initially backed the serviced-office vehicle.
The company is also taking a majority stake in OSiT’s second joint venture, LSO II, in which Forum Partners is a partner and shareholder.
Don Tan, vice-president of fund management at KaiLong, said: “Serviced offices are a very attractive new asset class, underpinned by strong growth drivers in both the UK market and globally, and offer excellent investment opportunities.
“We look forward to working with our new partners to identify further quality assets to enhance the current portfolio and maximise returns.”
OSiT said it was looking to use LSO II’s boosted investment capability to source opportunities in the central London office market.
Both of its serviced-office joint ventures target central London commercial office space in the City fringes, West End and Midtown districts.
The company is looking to secure properties in excess of 25,000 sqft that are close to Tube or rail links.
Giles Fuchs, co-founder and chief executive at OSiT, said: “To attract a global real estate investor of the calibre of KaiLong is a strong endorsement for the strategy and the performance of our two serviced-office joint ventures.”
OSiT said London continued to be the pre-eminent city for serviced offices, while regional cities including Manchester, Bristol, Glasgow and Edinburgh are growing fast.
The UK capital’s serviced-office market, which accounts for 30% of the UK market, has seen a 67% increase in floor space dedicated to serviced offices between 2004 and 2015.