CBRE Group, Inc. (CBRE) announced Monday the acquisition of a 35 percent interest in Industrious, a leading provider of premium flexible workplace solutions in the U.S. CBRE is now Industrious’ largest shareholder.
In addition, CBRE is expected to acquire an additional 5 percent of Industrious in the coming weeks, which would result in a 40 percent total stake.
The investment significantly increases CBRE’s participation in the flexible workplace sector and positions the company to meet rising demand from occupiers for agile space solutions, a trend that is being accelerated by the Covid-19 pandemic.
Under the agreement, two CBRE executives — President & CEO Bob Sulentic and Global Chief Investment Officer Emma Giamartino — will join Industrious’ Board of Directors.
As part of the transaction, CBRE’s flexible-space solutions offering, Hana, will be merged into Industrious. Industrious has more than 100 locations in more than 50 U.S. cities and specializes in asset-lite flexible workplace operating models.
CBRE acquired its 35% ownership in Industrious in the form of primary and secondary shares. The consideration includes approximately $200 million in cash and the transfer of Hana.
When the transaction closes, the 10 existing Hana locations in the U.S. and U.K. will be operated by Industrious. CBRE and Industrious will also work collaboratively to develop and bring to market new innovative solutions in the flex-space sector.
CBRE’s Andrew Kupiec, who leads the Hana business, will oversee CBRE’s day-to-day relationship with Industrious once the Hana transaction is completed in the second quarter. Kupiec will also continue as the leader of CBRE’s Host employee experience platform.
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