Monday, 19 June 2017

Blackstone taking control of The Office Group in Dorfman stake sale



Flexible office provider, The Office Group (TOG), is set to be controlled by the world's biggest property investor in a deal valuing it at £500m.
 
It was confirmed on Monday, following a report by Sky News, that Travelex founder Lloyd Dorman had sold the majority of his stake to Blackstone Real Estate Partners Europe.


The sale was expected to complete in the next couple of weeks, the statement added.


TOG, which competes in the UK with companies such as Regus and Second Home, was launched in 2003 by Olly Olsen and Charlie Green, its co-chief executives.


They combined their business with four sites owned by Mr Dorfman in 2010 - expanding the estate to a current level of 36 buildings, mainly in central London.


Clients include Dropbox and Santander.


Mr Olsen said: "Demand for flexible workspace continues to grow in the UK and globally.
 
 
"We are very excited, together with our new partner, Blackstone, to move onto the next phase of our development which will allow us to accelerate TOG's growth.


"We will do this by continuing to open new locations and defining new and innovative ways of addressing how people wish to work."


Anthony Myers, the head of European real estate at Blackstone, added: "The traditional workspace is being redefined in gateway cities across the globe, as evolving business practices increase demand for flexible office space to suit the needs of the discerning modern occupier.


"We are excited about this opportunity and look forward to working with the team to capitalise on the sector's continued growth."


The timing of the deal, which comes at a time of conflicting signals about the outlook for UK commercial property, will be seen as a sign that global investors remain confident in its prospects despite the Brexit vote.


The beginning of formal talks between the UK and the European Union coincides with ongoing contingency plans being drawn up by a string of big City employers to move jobs to the continent.




SKY      News.