M7 Real Estate is to share profits with workspace company Regus.

The London-based company said it entered a partnership with Regus to share the latter’s profits rather than take rent from its sites.

Charles Wardroper, portfolio network development director at Regus, said: “The deal delivers exciting new locations for Regus.

“It gives us a deeper relationship with our landlords and provides a capital-efficient way of expanding our network.” 

M7 said the deal provided higher potential returns on its investment compared with those achievable at existing rental levels, while at the same time helping to absorb vacant space and save empty rates charges.

The deal will cover multiple locations through a single transaction and initially focus on six sites in the UK, with further opportunities being sought across mainland Europe.