Blackstone has agreed to acquire a majority interest in The Office Group (TOG), the pioneering flexible workspace provider.
The stake is being acquired from Lloyd Dorfman and puts an enterprise value on TOG of around £500m. Clients include AOL, Dropbox, Pinterest, British Gas and Santander.
Lloyd Dorfman, together with co-founders Charlie Green and Olly Olsen will remain shareholders in the group post-transaction, which is expected to close this month.
Green and Olsen will continue in their existing roles as co-CEOs of TOG. The transaction is expected to close in June 2017.
TOG is a leading provider of design-led, flexible workspace and pioneered the concept in the UK. TOG has 36 buildings, mainly across central London, housing a fast growing and diverse client base of over 15,000 members.
Rothschild acted as sole financial adviser to TOG on the sale.
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, Head of European Real Estate at Blackstone, says: “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.”