Workspace provider signs Scottish franchise agreement

September 21, 2021

Flexible workspace provider IWG – which includes Regus and Spaces – has signed a franchise agreement in Scotland to help meet growing demand for hybrid working.

The new deal will serve towns and suburbs mainly used by people to commute into Edinburgh and Glasgow in the central belt.

 
It will see three franchise-owned centres opened across Lanarkshire between now and 2024.

IWG workspaces in Scottish suburban areas have seen a 20-25% increase in enquiries for its centres during the last quarter.

The franchise partnership will be led by Tommy Nevin of BT and EE franchisees, Graeme Orr a freelance project management consultant, Tony McCabe and Scott Gibson; both experienced operations directors.

Nevin is one of Scotland’s most experienced franchise investors and with McCabe and Gibson, now runs 70% of BT’s Scottish operations through his existing portfolio.

He is planning to move BT staff members to the first IWG franchise centre in the country.

The pandemic has accelerated demand for flex workspace outside the UK’s cities, with many seeking greater freedom in where and how they work in the long term.

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Julian Chambers, head of franchise at IWG for the UK and Ireland, said: “We’ve seen the demand soar considerably around the world in 2021, with more than a 350 percent increase in new locations committed by franchise partners so far this year, compared to the same period in 2020.

“Our UK partnerships have played a huge part in this and now, we are delighted to bring the opportunity to Scotland where there is still plenty of unmet demand across the country.”

Orr added: “It’s a hugely exciting time for the flexible workspace sector and we’re delighted to be spearheading IWG’s franchise network in Scotland.

“For years, people have commuted to cities such as Glasgow, Edinburgh and further afield for work, sometimes spending over two hours on public transport or on the motorway.”

By John Glover

Source: Insider

IWG to sell Japanese office business in £320m deal

April 15, 2019

Offices provider IWG has signed a deal with a firm in Japan which will see it sell its operations in the country, as the group targets more international partnerships.

The company, formerly known as Regus, will sell its Japanese operations to Tokyo-listed TKP for £320 million.

TKP will also be able to operate IWG’s Regus, Spaces and OpenOffice brands in Japan under a long-term master franchise agreement.

IWG boss Mark Dixon said the strategic partnership was part of the group’s increased focus on relationships with international partners.

The transaction realises an attractive valuation for IWG’s shareholders and re-affirms our strategy of capital efficient growth in IWG’s global network with an increased emphasis on partnershipsMark Dixon, IWG

He said: “Partnering and franchising are increasingly important elements of our growth strategy and TKP is an outstanding partner for IWG in Japan, with strong local expertise and leadership in adjacent markets and a complementary network of operations.

“The transaction realises an attractive valuation for IWG’s shareholders and re-affirms our strategy of capital efficient growth in IWG’s global network with an increased emphasis on partnerships.”

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TKP is a provider of conference rooms and banquet halls in Japan, with 249 locations across the country.

Meanwhile, IWG’s Japanese operations comprise 130 co-working centres.

As part of the wider franchise agreement, IWG will provide services to TKP such as access to its marketing and sales platform in return for a fee linked to revenue in Japan.

The sale is expected to complete in May once it is cleared by Japanese competition authorities.

The divested Japan business contributed £94.4 million to IWG’s revenue in 2018, and generated £20.6 million of underlying earnings.

Source: Belfast Telegraph