CBRE is taking a 40% stake in a US flexible offices provider, with plans to fold its own Hana business into it.
The agency has agreed to buy a 35% holding in Industrious, with another 5% acquired in the coming weeks. Hana will then be merged into Industrious, which will run CBRE’s 10 Hana locations in the UK and US. The consideration for the deal includes $200m in cash as well as the transfer of Hana.
CBRE’s Andrew Kupiec, who leads Hana, will oversee the agency’s day-to-day relationship with Industrious when the transaction completes in the second quarter.
CBRE president and chief executive Bob Sulentic and global chief investment officer Emma Giamartino will also join the Industrious board.
“Our investment in Industrious is consistent with our view that flexible office space is playing an increasingly central role in companies’ occupancy strategies, and aligns us with an exceptional operator and an outstanding leadership team that is executing a great strategy,” Sulentic said.
“We have been building our Hana flex space business expressly to meet the flex space opportunity, and Industrious now enables us to capitalise on it at scale with a portfolio of well-situated units in key markets.”
Jamie Hodari, co-founder and chief executive of Industrious, added: “Industrious is committed to being the voice that matters most in the future of work, and we share a vision with CBRE for delivering market-leading workplace experiences on a global scale. This investment grew out of a shared understanding that neither of our organizations can fulfil that vision alone.”
To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette
