Alternative investment manager The Carlyle Group has acquired three properties in London as part of a planned £150 mln (€171 mln) push into the flexible office and co-working sector.
The first acquisition comprises an operating business and an 18,000 sq ft (1,670 m2) operational asset in Islington, which is to be rebranded as ‘Uncommon’. The two other properties are an office asset in Borough and an office building in Fulham, which are to be developed into new facilities and will increase the Uncommon platform to around 1,300 desks in total.
Carlyle will work with JV partner Adir Group on the management of the Uncommon business and its facilities.
The acquisitions represent the first phase of a strategy to expand the Uncommon flexible office and co-working platform over the next 18-24 months in locations across London with strong transport connections.
Carlyle said it believes that the current change in working patterns, as well as occupiers’ increased requirement for cost-effective space with high levels of service, will continue to drive demand for flexible workplaces.
Commenting on the Uncommon strategy, Peter Stoll, managing director at The Carlyle Group, said: ‘As an emerging sector, we see the market for new concept working environments continuing to strengthen. An increasing number of businesses favour the flexibility and collaborative nature that this type of space offers. This, coupled with our belief that London will continue be a global centre of business and innovation, gives us confidence in our strategy.’
The Carlyle Group manages $162 bn of assets globally across four segments – corporate private equity, real assets, global market strategies and investment solutions.
Shortly after the transaction was disclosed, US private equity firm Blackstone announced it has agreed a takeover deal with UK flexible office space provider The Office Group (TOG), buying a majority stake from British enterpreneur Lloyd Dorfman which puts an enterprise value on the business of £500 mln (€572 mln).
