CBRE, which already holds a 40% stake in Industrious National Management Company, is acquiring the remaining equity of the flexible workspace provider in a deal valuing Industrious at $800m (€776.2m).
The commercial real estate services and investment firm will acquire the remaining stake in Industrious for approximately $400m and create a new building operations & experience (BOE) division, unifying building operations, workplace experience and property management.
CBRE first invested in Industrious in 2021, acquiring a 35% stake in the flexible workspace provider for $200m and merging its flexible office unit, CBRE Hana, into the company. A subsequent $100m investment in 2022 increased CBRE’s total stake to 40%.
CBRE said the newly created BOE unit will be led by Jamie Hodari, Industrious’ chief executive officer and co-founder, and will consist of CBRE’s enterprise facilities management, local facilities management, property management and Industrious.
Hodari will also act as CBRE’s chief commercial officer, with responsibility for marketing and branding activities across all CBRE businesses.
CBRE COO Vikram Kohli has been promoted and taken on increased responsibilities. He now has the additional title of CEO, advisory services.
Bob Sulentic, CBRE’s chair and CEO, said: “The advancements we’ve announced today support our strategy of investing in resilient businesses that benefit from secular tailwinds, creating new and differentiated products and continually improving the capabilities of our leadership team.
“Both Jamie and Vikram are highly accomplished executives. Jamie is creative, entrepreneurial and a strong strategic and operational leader. Vikram has exceptional leadership skills that include driving growth across geographies, keen financial and digital insight and a deep knowledge of our global business.”
Hodari said: “The global economy needs physical spaces to make it hum — safe and efficient logistics centres for our goods, magnetic offices for our teams and secure and resilient data centres for our information. Running these spaces with excellence requires sophistication at scale.
“I have found CBRE to be second-to-none in this respect, and I’m thrilled to be joining — not just because of how great it already is, but because of the opportunity ahead of us. I believe the new building operations & experience segment will transform how buildings are operated, creating immense value for building users and owners.”
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