Serviced office news 30th March 2016

Regus, the global workspace provider, and M7 Real Estate, the pan-European real estate investment and asset manager, have signed a strategic partnership deal which operates on a profit share model.

The partners said 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. For Regus, the relationship provides a portfolio of M7 locations for the company to further grow its flexible workspace network and client base throughout Europe. 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.

Charles Wardroper, Portfolio Network Development Director, Regus, said: “The deal delivers exciting new locations for Regus as we progress our strategy to create a global network of convenient, high-quality on-demand workspaces. It gives us a deeper relationship with our landlords and provides a capital efficient way of expanding our network.” Richard Croft, CEO of M7 said: “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.”