Pan-European real estate investor M7 has entered into a strategic partnership with global workspace provider Regus based on a profit share model rather than a typical leasing agreement.
Pan-European real estate investor M7 has entered into a strategic partnership with global workspace provider Regus based on a profit share model rather than a typical leasing agreement.
The partnership differs from a typical leasing deal – where Regus would pay M7 rent to occupy its sites – instead providing M7 with a share of the profit generated by Regus at the M7 sites.
In a statement, M7 said the relationship provides Regus with an attractive portfolio of locations 'to further grow its flexible workspace network and client base throughout Europe'. And for M7, the deal provides higher potential returns on its investment compared to those achievable at existing rental levels, while at the same time helping the company to absorb vacant space and save empty rates charges.
The deal will cover multiple locations through a single transaction and initially focuses on six sites in the UK, with further opportunities being sought across mainland Europe.
M7 CEO Richard Croft: 'This transaction is a further demonstration of M7’s ability to take an entrepreneurial and innovative approach to improving clients’ returns and to create mutually beneficial partnerships with leading global businesses such as Regus. We have an extensive pan-European portfolio across our various funds and mandates, which will benefit from this relationship whilst at the same time providing Regus with scale and product across the continent that not many landlords can provide.'
