Blackstone set to scoop up London-based flexible workspace firm The Office Group for £500m

Courtney Goldsmith
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Lloyd Dorfman invested in The Office Group in 2010 (Source: Getty)

Blackstone, the world’s largest property investor, is set to buy a London-based flexible workspace provider for £500m, according to reports.

The private equity giant will today announce its purchase of a controlling stake in The Office Group, which manages clients such as Facebook and Santander UK, according to Sky News’ Mark Kleinman.

The deal is a vote of confidence for the UK and the City of London, proving global investors remain confident in Britain ahead of Brexit negotiations.

The UK begins its formal Brexit talks with the European Union tomorrow.

The Office Group’s most recent results, published last year, showed strong performance. Pre-tax profits were more than £15m in 2015.

The flexible office space provider was launched in 2003 by co-chief executives Olly Olsen and Charlie Green. The two combined their business with four sites owned by entrepreneur Lloyd Dorfman in 2010.

Despite backing the Remain campaign, Dorfman has said the result of the European Union referendum benefited The Office Group. He explained that economic uncertainty made flexible office space business more attractive.

The management team of The Office Group is understood to be retaining a small stake under the deal with Blackstone.

The sale follows news that WeWork, a US-based shared workspace provider, had secured a reported $3bn investment from Japanese investor SoftBank. The deal valued WeWork at more than $17bn.

Blackstone declined to comment and The Office Group did not immediately respond to a request for comment.

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