Serviced apartment brand Bob W has signalled its plans to accelerate its European expansion, by setting up a site acquisition fund.
The company is to joint venture with Osborne+Co Investment Management, in launching an equity raise aiming to draw in GBP120m of investment into a new fund that could ultimately grow into a portfolio of serviced apartment properties worth around GBP400m. With backing in place, the fund aims to acquire and refurbish hotel and office assets to deliver apartments that will then trade under the Bob W brand and technology platform, offering guests great stays in city centre locations.
Expansion across Europe
The pair are targeting key European city centres for the project, which could potentially deliver up to 2,000 apartments from an anticipated 20 or more redundant properties. Ireland, Poland, Portugal, Spain and the UK are top of the team’s wishlist of locations.
OCIM is the investment management arm of developer and investor Osborne+Co, and the value add fund aims to largely match OCIM’s office presence across Europe. The aim is for the first assets to be converted and operating as Bob W units within 18 months. For now, the key focus is on finding one ideal investment partner, or a group of like minded investors.
By repurposing tired or obsolete assets, the pair will deliver an environmental upside, reusing as much as practical of existing buildings such as key structural elements. This reuse reduces the overall carbon footprint of any new property, compared with demolition and new build. In addition, new elements of the building such as glazing, external cladding and internal heating and cooling systems will be specified to ensure the repurposed building uses far less energy in its operations, than in the same property’s previous incarnation.
Such measures completely align with Bob W’s existing sustainability commitments. These include sourcing second hand furniture, buying only 100% renewable energy, and doubly offsetting all emissions; all of which leads to Bob W laying claim to being the world’s first international climate-neutral hospitality provider.
Transforming old offices
“This strategic partnership marks a major milestone for Bob W, enabling us to merge our cutting-edge, tech-driven hospitality solutions with Osborne+Co’s extensive expertise in real estate development,” said Niko Karstikko, Co-founder of Bob W. “Together, we aim to transform underutilised spaces into vibrant, high-quality serviced apartments that meet the evolving needs of modern travellers.”
Bob W currently operates across 29 European cities, and has an already impressive pipeline of growth, ahead of any signings under the new partnership. Bob W Cologne and Vienna are due to open in early 2025, followed later in the year by the launch of Bob W Kamppi in Helsinki. Further ahead, 150 unit sites are in development in Leipzig and Hamburg for opening in 2028, plus a conversion project in Stuttgart.
