The joint venture between Brightbay (previously RDI REIT) and OSiT was established in 2018. The portfolio is now owned fully by OSiT.
OSiT says the buyout marks a major milestone for the future trajectory of the business, unleashing the company’s plans to increase the portfolio value to £500 million in the next four years and to £1 billion by 2029. OSiT added that it is actively seeking new buildings in prime London locations to purchase to meet rising demand for flexible workspace, as well as partners to support its ambitious growth plans.
The deal follows a period of exponential growth for the sector following the Covid-19 pandemic, which has seen demand for flexible office space up 82 per cent on pre-pandemic levels. In fact, according to JLL’s 2021 Global Flex Space Report as workers return to offices, 41 per cent of occupiers are expected to increase use of flexible workspace as part of a post-Covid work strategy.
In light of this, defining an industry-wide valuation standard for flexible offices remains a major priority for the company in the next six months, with talks ongoing between OSiT and leading academics Professor Neil Dunse and Professor Michael White.
Giles Fuchs, Chairman of Office Space in Town, said: “This deal marks the beginning of an incredibly exciting chapter in OSiT’s growth. This new phase will enable the OSiT team to deliver on our ambitious vision for the future, including our active search to acquire new buildings and plans to grow the portfolio value to £1 billion.
“Our partnership with Brightbay showcased just how much value and potential institutional investors see within our rapidly growing sector and in OSiT as a business.”