BLP advise on the sale of a majority interest in The Office Group to Blackstone
International law firm Berwin Leighton Paisner (“BLP”) have advised the co-founders and management of The Office Group (“TOG”), the London based design-led flexible workspace provider on the sale of a majority interest to Blackstone and on their ongoing investment in partnership with Blackstone. The deal puts an enterprise value on TOG of approximately £500m, and primes the company, that was founded in 2003, for further accelerated expansion.
The Office Group was founded by business partners Charlie Green and Olly Olsen, and received funding in 2010 from Travelex founder Lloyd Dorfman. All three will maintain a stake in the business post transaction, with Charlie and Olly continuing as co-CEOs.
Co-founder Olly 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.”
Charlie Green, co-founder, added: “Olly and I founded TOG in 2003. Since 2010, under Lloyd Dorfman’s stewardship, TOG has grown from 7 buildings to 36, and we thank Lloyd for his investment and all his support. This is the start of a new and very exciting era for TOG.”
On conclusion of the deal, Dorfman said: “In my seven years with the business, we have significantly expanded the portfolio and client base. The Office Group is a dynamic and innovative business, with buildings in optimal locations operating in a market whose time has come. It’s a really hot sector and Blackstone recognises that. London is the leading city in the world for flexible office space and trends in the labour market show growing appetite for this type of work environment.”
Commenting on the deal, Anthony Myers, head of Blackstone’s European Real Estate team said, “We are excited by the opportunity, 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.”
The BLP transaction team was led by Corporate Finance Partner John Bennett, and included Alexis Karim, Alastair Zucker, Ryan Harvey, Laura Jenkins and Mark Kaye.