CBRE goes all in for Industrious in $400m deal
CBRE has agreed to buy the remaining stake in flexible workspace provider Industrious for $400m (£329m), with the transaction expected to close later this month.
The move follows CBRE’s initial investment in Industrious in late 2020 through the acquisition of a 40% equity interest and a $100m convertible note.
Taking full control of Industrious underscores CBRE’s conviction about the long-term growth prospects for the flexible workplace market. As such, CBRE will create a new business segment to be known as Building Operations & Experience. This new business arm will unify building operations, workplace experience and property management.
CBRE has agreed to buy the remaining stake in flexible workspace provider Industrious for $400m (£329m), with the transaction expected to close later this month.
The move follows CBRE’s initial investment in Industrious in late 2020 through the acquisition of a 40% equity interest and a $100m convertible note.
Taking full control of Industrious underscores CBRE’s conviction about the long-term growth prospects for the flexible workplace market. As such, CBRE will create a new business segment to be known as Building Operations & Experience. This new business arm will unify building operations, workplace experience and property management.
The division will be led by Jamie Hodari, chief executive and co-founder of Industrious, and will consist of CBRE’s existing enterprise facilities management, local facilities management, property management and Industrious teams.
This segment produced $20bn of combined revenue in 2024, and CBRE expects it to be immediately accretive to 2025 core EBITDA and free cash flow.
In addition, Vikram Kohli, chief operating officer at CBRE, has taken up the additional title of chief executive for advisory services, in a move to grow leasing, capital markets and valuation activities. In his expanded role, Kohli will drive company-wide strategy and ensure the company is taking maximum advantage of opportunities to collaborate, realise efficiencies and achieve positive synergies across business segments and key platform functions.
Bob Sulentic, chair and chief executive at CBRE, said: “The advancements that we have announced today support our strategy of investing in resilient businesses that benefit from secular tailwinds, creating new and differentiated products and continually improving the capabilities of our leadership team.”
Photo: Jamie Hodari © Industrious
