A joint venture between Forum Partners and Office Space in Town (OSiT) has been given a new £51.5m (€67.6m) facility from Renshaw Bay and Deutsche Bank.
OSiT and Forum’s London Serviced Offices joint venture, launched in 2012, typically buys and refurbishes offices in London.
The companies said serviced offices offered attractive investments for institutions seeking to match their long-term liabilities over a typical 25-year period with a “stable, robust yield”.
Giles Fuchs, co-founder and chief executive at Office Space in Town, said serviced offices were now “clearly being recognised by banks and financial institutions as a separate long-term asset class”.
The companies said they were in advanced negotiations with “blue-chip property and financial investors” to raise the equity capacity of its £30m LSO II joint venture to £100m.
Further funds will be used to buy and refurbish additional buildings, primarily in London’s Zone 1.
OSiT and Forum formed London Serviced Office in 2012, launching the initial £36.5m LSO I joint venture.
The partnership then launched LSO II in August last year.