Blackstone eyes £1.5bn sale of Office Group

BLACKSTONE is exploring a £1.5bn sale of The Office Group as it looks to capitalise on rival WeWork’s collapse.

City sources said the private equity giant was targeting a deal in the first quarter of 2025, with a sale or stock market listing among potential options.

Blackstone acquired a majority stake in The Office Group in 2017 in a bet on growing demand for flexible working space. After the pandemic dealt a hammer blow, demand has since picked up as a growing number of companies adopt a hybrid approach to working. In 2022, The Office Group struck a deal to merge with Fora, a rival flexible office space provider with spaces across London and in Germany.

The tie-up created one of the largest players in the market, with more than 3m sq ft of office space and a reported valuation of £1.5bn. The company’s offices serve around 29,000 employers.

The Office Group, which has now rebranded as Fora, has also benefited from the collapse of WeWork, the office company founded by Adam Neumann that declared bankruptcy late last year.

WeWork has begun slimming down its portfolio in London, shutting down sites in Finsbury Square, Bishopsgate and Clerkenwell as part of efforts to achieve a “sustainable capital structure and profitable business”.

Sources said WeWork’s retreat had created a new opening for The Office Group and boosted its market share. Unlike WeWork, which predominantly holds long leases, The Office Group owns the freehold on most of its buildings. The Office Group is now one of the largest operators in central London, with more than 60 locations.