Home News CBRE Invests Another $100M in Industrious to Fund Global Expansion – Commercial Observer

CBRE Invests Another $100M in Industrious to Fund Global Expansion – Commercial Observer

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CBRE Doubled flex and invested $ 100 million in workspace providers Diligence To support its global expansion, Commercial Observer has learned.

New funds will be added to $ 230 million CBRE invested in Industrias in early 2021This represents a 40% stake in the company. At that time, Industrias also took ownership of CBRE’s unique flexible workspace platform. flowerThere were 10 places.

“Flexspace has great opportunities,” said CBRE’s Chief Financial Officer and Investment Officer. Emma Jamartino.. “”After years of building Hana, we found that we needed an outside partner to take it to the next level. “

According to Jamartino, expectations for the workspace have changed, giving more opportunities for flex last year.

“Occupants’ demand for flexspace has only increased since we made our first investment,” she said.

In a 2022 survey of US occupants, 59% said flexspace would account for more than 10% of their portfolio within two years. according to CBRE.

Flex space is mature. As enterprises rethink their workspace strategies over the last two years, more C-suite executives are becoming more directly involved in workplace decisions. Often, you are interested in working with a single partner throughout your portfolio and need a global network of locations. Hard-working co-founder and CEO said Jamie Hodari..

“As the days go by, long-term leasing and flex entanglement, workplace and building management as a service become more prominent,” Hodari said. “And many companies have moved from tampering with flex, which feels like experimentation, to doing it as a more programmatic and lasting decision.”

To meet that demand, Industrialious has expanded internationally and acquired two workspace companies. Great room With Asia Welkin & Melaki In Europe, for just over $ 100 million, the company announced earlier this month. With this acquisition, Industrialious has gained a foothold in six countries, including France, China and Singapore. Existing teams will remain to manage operations in their respective countries.

Since Industrias operates like Industrias using management contracts rather than leasing, we chose two companies in a total of 12 locations.

“We couldn’t buy a 100-unit provider with all the leases, otherwise our business model would be completely disrupted or upset,” Hodari said. ..

The acquisition is the first step for Industrias, but there is a long way to go to play with the world’s leading workspace companies. We work When IWGThere are over 750 and over 3,300 locations, respectively.

Even before the acquisition from CBRE and the capital injection, Industrias was expanding rapidly. The company currently operates more than 150 locations in 50 cities in the United States and the United Kingdom. More than 1 million square feet of space will be added in 2021 and will exceed that amount in 2022. Revenues increased by 190% between April 2021 and April 2022, according to Industrious figures.

“Sustainable” growth, Hodari said. This is one of the benefits of working with strategic partners like CBRE, rather than venture capital firms that may prioritize growth over strong financial fundamentals. “They are the first, second and third businessmen,” he said. CBRE’s funds are in the form of convertible preferred stock, and according to CBRE, they will not increase ownership of Industrious until the securities are converted.

Jamartino, who is also on the board of directors of Industrias, agreed. “From an investment perspective, we are investing in Industrias because we see long-term, lasting growth opportunities,” she said.

“It’s like selling a cell phone in 2002,” Hodari said. “Although adoption in this category is increasing, it still needs to be good.”

Chava Gourarie can be reached at [email protected]..

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