Blackstone has bought a majority interest in serviced office provider The Office Group.
The private equity giant has paid around £500m for the company, which was founded in 2003, and which in 2010 received investment from Travelex owner Lloyd Dorfman, who became chairman.
Dorfman, together with co-founders Charlie Green and Olly Olsen, will remain shareholders in the group post-transaction; Green and Olsen will continue in their existing roles as joint chief executives. The transaction is expected to close in June 2017.
On confirming the deal today, The Office Group described itself as a “leading provider of design-led, flexible workspace”. The group has 36 buildings, mainly across central London, housing around 15,000 members in total. Clients currently include AOL, Dropbox and Pinterest, as well as corporates such as British Gas, and Santander.
Rothschild acted as sole financial adviser to The Office Group on the sale.
Anthony Myers, head of European real estate at Blackstone, said: “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.”
