Bristol-based serviced accommodation pioneer SACO – one of the city’s business success stories of the past two decades – has merged with international investment group Oaktree Capital Management in a move that creates a £60m business with a portfolio of nearly apartments 1,650 worldwide.
SACO was launched 16 years ago by wife and husband Lesley and David Freed with just one venue in Bristol. It expanded in the city and then grew rapidly across the UK and more recently internationally to become one of the leading players in the fast-growing sector. 
David Freed was already established in property circles as co-owner of development firm Deeley Freed. But the concept of serviced apartments was new to the UK – the couple had seen them in the US and believed they could offer an alternative to hotel stays for business people working away from home.
A secondary market became couples and families who did not want to stay in traditional hotel accommodation.
Properties, which tend to be in city centres close to restaurants, include cooking and laundry facilities – making them a home-from-home for clients.
The merged company, which will operate under the SACO brand, will be made up of both Oaktree and SACO’s existing serviced apartment offering, as well as a new Beyonder ApartHotel product that will enable it to compete with Airbnb – the hyper-growth digital accommodation firm.
This will be an innovative serviced apartment concept which has been developed by CL Serviced Apartments, Oaktree’s existing serviced apartment platform.
The merged firm will have a portfolio of 1,645 apartments, which includes new transactions on 945 apartments across 10 properties in London, Amsterdam, Edinburgh, Glasgow, Aberdeen and Dublin that are scheduled to open beginning December 2015, along with SACO’s existing portfolio of 700-plus operated apartments across the UK.
David and Lesley Freed have re-invested in the combined company and plan to stay actively involved.
Beyonder ApartHotels is focused on helping so-called millennial travellers get the most from their stays – whether it’s for six days or six months.
Each Beyonder ApartHotel unit will have a minimum of 30 sq m with four distinct areas – bedroom, bathroom, kitchen and living space – and is designed to exceptionally high standards.
Tablets control everything from the lighting to the television to the blinds, and free, high-speed wireless internet, telephone and films come standard.
The first Beyonder ApartHotel is due to open in London in December 2015.
Lesley Freed, pictured, said: “Oaktree is a highly-respected investor with a long and successful track record investing throughout the United Kingdom and Europe.
“SACO is pleased to be partnering with Oaktree on this transaction, as we will benefit from both their expertise and capital commitment as we seek to expand our suite of products with the launch of Beyonder ApartHotels, and redefine serviced accommodation by offering our customers a range of options in key destinations across the globe.”
The combined company will be led by Stephen Hanton, managing director of SACO since 2013, who will become CEO of Commercial, and Max Thorne, who has led Oaktree’s entry into the serviced apartment sector and the development of the Beyonder ApartHotel concept, who will become CEO of Property.
Stephen Hanton said: “This transaction marks the exciting next chapter of SACO’s growth and development. We have acquired and are developing a unique set of properties for our growing business traveller clientele, whose preferences include more space and better integration into the fabric of the cities in which they are temporarily working and living.”
Max Thorne added: “This new serviced apartment business will fit perfectly with the prime city-centre properties upon which we are expanding. Our new Beyonder ApartHotels will complement SACO’s existing range of high quality properties and will establish a new standard in this dynamic sector.”
Pablo Vélez, a Senior Vice President in Oaktree’s European Principal Group, said: “Oaktree is pleased to be combining its serviced apartment platform with SACO to create an exciting new company. With Beyonder ApartHotels as just one of the many attractive initiatives in the pipeline, the combined company is well-positioned for additional growth and value creation.”
