Serviced offices group IWG is selling its Japanese operations to TKP Corporation for £320m (€370.9m) as part of a franchise deal.

IWG, formerly known as Regus, said it will sell Regus Japan Holdings KK to TKP and the parties have agreed an exclusive master franchise agreement for the country.

IWG’s Japanese operations comprise 130 flexible co-work centres. The total gross asset value of the divested business as at the end of last year was £98.3m, IWG said.

The franchise agreement will allow TKP to the use of the Regus, Spaces and OpenOffice brands in Japan.

As part of the deal, Mark Dixon, CEO of IWG, will join the board of directors of TKP as a non-executive director. Shingo Nishioka, country manager of IWG Japan since 2010, will transfer as part of the transaction and will continue to drive the development plan within the TKP group.

Dixon said: “Partnering and franchising are increasingly important elements of our growth strategy and TKP is an outstanding partner for IWG in Japan, with strong local expertise and leadership in adjacent markets and a complementary network of operations.

“The transaction realises an attractive valuation for IWG’s shareholders and re-affirms our strategy of capital efficient growth in IWG’s global network with an increased emphasis on partnerships.”