Serviced offices group IWG has called off takeover talks with a number of private equity investors.

IWG, formerly known as Regus, said it told Starwood, Terra Firma and TDR that it no longer intends to continue discussions about possible offers for its entire issued share capital.

A number of private equity houses have looked to gain a share of the burgeoning flexible workspace sector. Last year, Blackstone acquired The Office Group and Carlyle bought a platform from the Adir Group.

According to a recent report by flexible workspace specialists The Instant Group, the market in London has grown by 25% over the past two years and now encompasses 20m sqft.

IWG, which has been in operation for nearly 30 years, is now competing with WeWork and a growing number of providers.

The company stated: “The Board remains confident in the long-term value of and opportunities for IWG.

“It is the global leader in the co-working and flexible workspace sector, a market that is experiencing its most exciting stage of growth in over 30 years as increasing numbers of companies look to capture the strategic and financial advantages of flexible working.”

M&G Real Estate today announced that Spaces, a subsidiary of IWG, had signed a 15-year lease for 30,993sqft of office space in Glasgow.

The office building at 1 West Regent Street, which was acquired by M&G in 2016, will increase the availability of flexible workspace in Scottish city.

Rupert Cooper, development director at Spaces, said: “The flexible workspace revolution has well and truly arrived and we are seeing demand for flexible office space increasing dramatically.

“Our research has shown that 53% of professionals now choose to work flexibly for at least half of their working week, illustrating just how important it is for companies to capitalise on this growing trend.”