London – The Office Group (“TOG”) and Blackstone Real Estate Partners Europe V (“Blackstone”) are pleased to announce that Blackstone has agreed to acquire a majority interest in TOG from Lloyd Dorfman CBE putting an enterprise value on TOG of approximately £500m.
Lloyd Dorfman, together with the co-founders Charlie Green and Olly Olsen, will remain shareholders in the group post-transaction and Charlie and Olly 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 Britain. Today TOG has 36 buildings, mainly across central London, housing a fast growing and diverse client base of over 15,000 members. TOG clients currently include: AOL, Dropbox and Pinterest, as well as large corporates such as British Gas, and Santander.
Rothschild acted as sole financial adviser to TOG on the sale.
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.”
Lloyd Dorfman CBE, Chairman of TOG, said: “In my seven years with the business, we have significantly expanded the portfolio and client base. TOG is a dynamic and innovative business, with buildings in optimal locations operating in a market whose time has come. London is the leading city in the world for flexible office space while current trends in the labour market show growing appetite for this type of work environment. Charlie and Olly are the best in the business, and have been an absolute pleasure to work with.”
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.”
About TOG
- TOG is a leading provider of design-led and flexible offices, meeting rooms and co-working spaces for start-ups, small businesses as well as larger, more established businesses.
- TOG allows members to work across multiple locations and enables companies to grow, downsize or exit a space quickly and cost effectively.
- TOG is focused on creating inspirational workplaces with a genuine sense of community, as highlighted by the inclusion of spaces such as libraries, screening rooms, cafes, gyms and roof gardens.
- Co-CEOs Charlie Green and Olly Olsen co-founded TOG with their first building in 2003.
- Further information is available at www.theofficegroup.co.uk.
- Follow TOG on Twitter @TheOfficeGroup
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $102 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics) and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.
Contact:
TOG
Redleaf Communications
Emma Kane/Laura Westmacott/Sofie Ford
+44 20 7382 4720
[email protected]
Blackstone
Andrew Dowler
+44 20 7451 4275
[email protected]