Private equity firm Blackstone has acquired a majority stake in The Office Group, now known as TOG, which provides flexible workspace.
Blackstone has acquired the stake from the group’s chairman Lloyd Dorfman in a transaction which puts an enterprise value on TOG of approximately £500m.
TOG was started in 2003 by Charlie Green and Olly Olsen with a single building. It now has 36 buildings, mainly across central London, which provide flexible offices, meeting rooms and co-working spaces for more than 15,000 members, who include start-ups and small businesses as well as larger, more established businesses.
Its clients currently include AOL, Dropbox and Pinterest, as well as British Gas and Santander.
Lloyd Dorfman, Charlie Green and Olly Olsen will remain shareholders in the group following the transaction and Charlie and Olly will continue in their existing roles as co-CEOs of TOG.
TOG 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.”
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.”