The Office Group (“TOG”) and Blackstone Real Estate Partners 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 €572.2m (£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.
Olly Olsen, Co-founder 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.”