IWG has agreed to sell its operations in Taiwan for £22.7m to TKP Corporation and entered into an exclusive master franchise agreement for the country.
It is the second deal between the serviced offices firm and Tokyo Stock Exchange-listed TKP, which in April agreed a similar deal for all of IWG’s operations in Japan.
IWG’s operations in Taiwan include 14 flexible co-working centres. The deal also gives TKP exclusive rights to the use of the HQ, Regus and Spaces brands in Taiwan, and allows it to continue to operate the Taiwanese centres under IWG’s brands and operating platform.
Like the deal struck for IWG’s Japanese operations, TKP has committed to a development plan to significantly add to IWG’s network in Taiwan and IWG will provide ongoing services and support to TKP in return for an on-going platform fee linked to system-wide revenues in Taiwan.
The deal is expected to complete in next month, subject to the approval of the Taiwanese Investment Commission of the Ministry of Economic Affairs.
See also: Mark Dixon on how IWG aspires to be the IHG of the serviced office market
The Taiwanese business contributed £6.8m to IWG’s revenue and generated EBITDA of £1.4m in 2018. The total gross asset value of the divested business as of 31 December 2018 was £9.9m.
IWG said it would use the proceeds from the sale for general corporate purposes.
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