Flexible workspace providers The Office Group (TOG), backed by Blackstone, and London-based Fora have announced plans to merge to meet the rapidly growing demand for hybrid working.
The merger, which is subject to regulatory approval, would create a combine with 72 locations totalling over 3 million sq ft (280,000 m2) across the UK and Germany, with plans to expand to other European cities.
The two firms said the tie-up was motivated by the rapidly growing demand for flexible workspace as businesses seek greater employee productivity, comfort and wellbeing, as well as better amenities to suit different working styles and needs in a post pandemic world.
The co-founders and CEOs of the two businesses, Olly Olsen of TOG and Enrico Sanna of Fora, will drive the new company forward. Olsen will become executive chairman, while Sanna will take the reins as CEO. Charlie Green will become president, responsible for all aspects of real estate across the combined business, and Katrina Larkin will be chief ESG officer.
Said Olsen: ‘The strong strategic and cultural fit between our two businesses and the supportive market dynamics, as more businesses embrace flexible working, make this merger an exciting proposition.
‘We have seen a clear and growing need from corporates for better quality environments, with great amenities, beautiful design and that are easily accessible. The combination of our businesses would ensure that we are best placed to meet this growth opportunity in both the UK and Europe, offering existing and potential members even greater choice.’
Sanna commented: ‘Businesses are increasingly recognising that the workplace is no longer a commodity, but rather a space that can be used to actively drive improved productivity, collaboration and the wellbeing of their teams.
‘The combined portfolio of TOG and Fora will meet this need and evolving expectations, offering high quality and flexible locations that are design-led, with a range of services and amenities that are conducive to enhanced employee and business performance.’
Blackstone acquired a majority interest in TOG in June 2017. The firm has 44 buildings across the UK (London, Cambridge, Oxford, Reading, Bristol, Leeds) and Germany (Berlin, Frankfurt, and Hamburg). A further six buildings are under construction across both London and Germany and due to open in the next 18 months, with two additional locations opening in 2024.
Fora is backed by funds advised by Brockton Capital. The current Fora network consists of 14 locations across London, with six new workspaces in the pipeline.
Rothschild & Co advised on the merger.
