CBRE Group acquired a 35% stake in Industrious before a possible IPO provider flex-office by 2021.
“We are big believers in the flexible workspace arena and we see a huge opportunity,” CBRE CEO Bob Sulentic told Bloomberg News.
Thanks to this investment, CBRE is Industrious’s largest shareholder, and it’s not over yet: The real estate giant plans to buy another 5 percent stake in the company in the next few weeks, Sulentic said.
Dallas-based CBRE has paid approximately $ 200 million in cash for primary and secondary shares and is transferring its own flexible brand, Hana, which operates 10 offices in the United States and the United Kingdom, to Industrious as part of the transaction, the companies said.
The deal values Industrious at more than $ 600 million, a man with knowledge of the matter told the publication. Sulentic and Emma Giamartino, CBRE’s global investment director, join Industrious’s board of directors.
Intensive co-founder and CEO Jamie Hodari said the company’s focus on customer service and its business model based on management agreements with landlords was confirmed, not traditional leases.
“That’s part of why we could spend the last year planting while the others were pruning,” Hodari said.
Industrious said The real solution that the company plans to publish later this year or early 2021.
This step comes at a time when Industrious’s rivals in the flex-office space were in decline. Regus and Knotel recently filed for bankruptcy, with the latter expected to acquire the Newmark Group. WeWork is “adjusting the rights” to its footprint as it strives to be profitable, and is considering an IPO sometime this year. [Bloomberg News] – Akiko Matsuda