STAYCITY TO FORGE AHEAD WITH STELLAR GROWTHPublish date: Sun 29 Mar, 2015
Leading serviced apartment operator Staycity has announced a shareholder restructuring that underpins its ambitious pan-European growth plans.
Staycity, one of the fastest growing serviced apartment businesses in Europe, has obtained capital funding from Swedish finance house Proventus Capital Partners, in a deal brokered by corporate finance advisor IBI.
“We are delighted that Proventus has recognised the growth potential in the Staycity business. There is growing demand for serviced apartments across Europe so it’s an exciting time for us to continue to expand and strengthen the Staycity brand,” said CEO Tom Walsh.
Staycity has raised capital of around €20m in a deal that values the company at €40m. The restructuring makes founders Tom Walsh and Ger Walsh the largest shareholders and sets the stage for the next five years of ambitious growth.
Said a spokesperson for Proventus: “Staycity has a leading position in an expansive and fast-growing niche of the travel industry. We believe the company is well positioned to continue to grow with its strong value proposition and efficient operations. We are looking forward to working closely with the owners and management to support the company’s next phase of growth.”
The announcement follows the departure from the business of long-term shareholder Irelandia, the investment vehicle of the Ryan family. Irelandia has held a 40% share in Staycity since 2007.
“As an early-stage investor we knew Irelandia would look to realise a profit at an appropriate point. We are grateful for the support Irelandia has given us as well as their help and guidance during our initial set-up and growth period. At this stage of our growth cycle it is important that the company broadens its capital platform and we are happy that our new partnership with Proventus achieves this,” said Tom Walsh.
Dublin-based Staycity enjoyed over €125m of institutional backing in 2014 and is currently negotiating new deals valued at over €250m in major European cities with similar blue-chip institutional investors.
Staycity currently operates over 1,000 apartments in eight European cities including Birmingham, Dublin, Edinburgh, Liverpool, London Heathrow, London Greenwich, Manchester, Paris and Amsterdam.
In addition to its 1,000 operating units, the company has a further eight purpose-built Staycity designed aparthotels currently under construction which will see its operating stock increase to 2,000 units in the next 12 months. It intends to grow to 10,000 units in the next five years, which will reinforce its position as one of the leading European serviced apartment operators.
This year sees the opening of a 172-apartment Staycity in Birmingham, its second in the city, and a 144-apartment building in Lyon, France.
Last year Staycity acquired a lease on a prestigious site in London’s tourist hotspot, Covent Garden, which when it opens in early 2016 will house 106 studio apartments. The interior design by the award-winning architects Heneghan-Peng, will spearhead what will be the first of a luxury Staycity concept planned for premium city centre locations.
In addition construction work on a six-storey, 197-apartment building in York has recently got underway, scheduled to open in Summer 2016. The development, a mix of studio, onebedroom and two-bedroom apartments, is adjacent to the city’s York Barbican.