IWG Secures Deal To Sell Switzerland Units For USD121.5 Million

(Alliance News) - Office space firm IWG PLC on Monday said it has entered into an agreement to ...

Alliance News 4 November, 2019 | 9:09AM
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(Alliance News) - Office space firm IWG PLC on Monday said it has entered into an agreement to sell its Swiss subsidiaries for CHF120 million, about USD121.5 million.

The Regus brand owner will sell the assets to a venture jointly owned by the J Safra Sarasin Group, a Swiss private bank with over USD249 billion total assets under management, and investment holding firm P Peress Group.

The FTSE 250 firm explained: "IWG and the purchaser have entered into definitive sale and purchase agreements for the entire issued share capital of IWG's subsidiaries in Switzerland, which had 38 flexible co-working locations as at September 30.

"IWG and the purchaser have also entered into a long-term master franchise agreement which provides the purchaser with exclusive rights to the use of IWG's brands in Switzerland. The purchaser will continue to operate the existing centres under IWG's brands and operating platform and has committed to a development plan which will add significantly to IWG's centre network in that country."

The agreement is similar to deals struck with TKP Corp, which saw IWG sell its Japanese and Taiwanese operations.

Chief Executive Mark Dixon said: "We are delighted to have entered into this strategic partnership with the J. Safra Group and the P Peress Group. Both groups are seasoned real estate investors with deep knowledge of our markets.

"This transaction builds on the successful completion of similar deals in Japan and Taiwan earlier this year and further demonstrates the continued interest from third parties wanting to operate IWG's brands across a wide range of geographies."

The deal is expected to be completed at the end of November.

IWG shares were 2.5% higher at 392.70 pence each in London on Monday morning.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
IWG PLC 444.50 GBX -0.56 -

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