Flexible Workspace Market: OSiT Secures €150M London Refinancing

Office Space in Town Secures €150M Refinancing for Four Central London Flex Properties

LONDON, United Kingdom  August 24, 2026 - UK flexible workspace operator Office Space in Town (OSiT) has secured a €150 million refinancing package for four of its central London properties, in a transaction that reinforces institutional confidence in the premium end of the global Flexible Workspace Market and signals continued capital commitment to the owner-operator model in one of the world's most competitive commercial real estate environments.

The refinancing, which extends OSiT's long-standing relationship with Aberdeen Investments, covers four properties across London's Zone 1 located in the St Paul's, Liverpool Street, Monument, and Waterloo submarkets. Aberdeen Investments serves as the senior lender, providing €84 million of the total facility, with the remaining financing partners undisclosed. PwC advised OSiT on the transaction, which has been agreed for a minimum of two additional years.

OSiT operates on a distinctive owner-operator model, acquiring buildings before refurbishing and operating them as flexible workspaces under its "Omni-Office" concept a format that integrates flexible office space with a broad range of on-site amenities and services within a single building. The operator's wider UK portfolio spans approximately 20,900 square metres, with additional locations in Blackfriars and Cardiff. OSiT is now actively seeking an investment partner to support further acquisitions across central London, targeting buildings ranging from approximately 2,300 to 9,300 square metres and above.

Key Highlights:

• €150 million refinancing secured: The transaction covers four Zone 1 London properties St Paul's, Liverpool Street, Monument, and Waterloo reinforcing OSiT's capital position and enabling continued portfolio investment and expansion.

• Owner-operator differentiation: OSiT's model of acquiring, refurbishing, and operating its own buildings distinguishes it from asset-light operators, providing greater control over design, service quality, and long-term capital appreciation.

• Omni-Office expansion pipeline: Future OSiT acquisitions are intended to extend the Omni-Office model, potentially incorporating nurseries, dental practices, rooftop padel courts, and other lifestyle amenities alongside core flexible workspace offerings.

• Seven-year institutional relationship: Aberdeen Investments' continued participation as senior lender now extended for at least two more years reflects sustained institutional confidence in OSiT's business model and the London flexible workspace sector's long-term fundamentals.

Analyst Insight:

According to analysts at Next Move Strategy Consulting, OSiT's €150 million refinancing transaction is a significant indicator of the maturing capital markets infrastructure supporting the Flexible Workspace Market, particularly within the premium owner-operator segment. NMSC analysts note that the global Co-Working Space Market valued at USD 12.93 billion in 2025 and projected to reach USD 15.39 billion by the end of 2026, with a further trajectory toward USD 74.28 billion by 2035 at a CAGR of 19.1% is increasingly attracting institutional capital as operators demonstrate resilient occupancy performance, differentiated service models, and long-term income stability. The OSiT transaction underscores a structural shift in how institutional lenders and investors evaluate flexible workspace assets moving beyond occupancy metrics toward a broader assessment of brand differentiation, amenity integration, and owner-operator capital discipline.

Industry Outlook:

OSiT's refinancing marks a notable development for the broader Flexible Workspace Market, particularly in the context of London's rapidly evolving flex office landscape. Managed office space in London has expanded by more than 580% over the past five years, now accounting for approximately 18% of the city's total flexible workspace offering a trajectory that reflects sustained enterprise demand for premium, service-rich environments that go beyond conventional coworking formats.

The Omni-Office model combining flexible workspace with lifestyle amenities, hospitality-grade design, and long-term occupier relationships represents an emerging competitive archetype within the global flexible workspace industry. As enterprises increasingly treat flexible workspace as a strategic extension of their corporate real estate portfolios rather than a short-term cost measure, operators capable of delivering differentiated, amenity-rich environments are expected to command stronger occupancy rates, higher revenue per square metre, and greater institutional investor interest.

With the global Co-Working Space Market projected to grow at a CAGR of 19.1% through 2035, capital transactions of the scale and structure demonstrated by OSiT's refinancing are expected to become more frequent reflecting the sector's transition from an alternative real estate category to a mainstream, institutionally recognized asset class.

Source: Coworking Europe

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Prepared By: Sanyukta Deb