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Blackstone buys majority stake in TOG
Posted on Monday, 19 June 2017 11:30
Travelex founder Lloyd Dorfman CBE is handing over a majority interest in The Office Group (TOG) to Blackstone in a sale which gives his UK flexible corporate workspace provider an enterprise value of GBP 500.00 million.

Dorfman and the co-founders, Charlie Green and Olly Olsen, will remain as shareholders, with the latter two continuing in their roles as co-chief executives of the design-led company.

Founded in 2003, TOG is billed as a leading provider of flexible offices, meeting rooms and co-working spaces for start-ups, small businesses and larger, more established organisations.

The company has 36 buildings, mainly across central London, housing a diverse client base of over 15,000 members which include AOL, Dropbox and Pinterest, as well as big corporates such as British Gas, and Santander.

It gives its clients a way of growing, downsizing or exiting a space quickly and cost effectively and offers spaces with libraries, screening rooms, cafés, gyms and roof gardens.

Green and Olsen established TOG with the backing of Bridges Ventures and by September 2010, when Dorfman led a management buyout worth GBP 43.30 million, the business had seven buildings in its portfolio.

TOG had revenue of GBP 54.30 million in 2015 (FY 2014: GBP 33.60 million) and earnings before interest, tax, depreciation and amortisation of GBP 15.40 million (FY 2014: GBP 11.60 million).

Blackstone’s real estate arm has about USD 102.00 billion in investor capital under management and a portfolio of hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America.

Its holdings include Hilton Worldwide, Invitation Homes (single family homes), OfficeFirst and prime workspace buildings in the world’s major cities.

According to Sky News, the sale has been in the pipeline for several months now as Dorfman asked Rothschild to look into options for TOG earlier this year.

© Zephus Ltd