The Office Group sale ‘bags Dorfman £200m’

Travelex founder Lloyd Dorfman has sold a majority stake in his flexible office space group to Blackstone in a deal which property experts say has netted him a £200 million profit.

Dorfman first invested in The Office Group seven years ago, backing management led by founders Charlie Green and Olly Olsen, who set up the company in 2003.

They, and Dorfman, are retaining some shares in the company after Blackstone’s takeover of about 75% of the business.

The private equity giant has snapped up the rump of The Office Group — whose offices and co-working spaces are mainly in London — in a deal valuing the business at £500 million.

The Office Group’s clients are typically start-ups and SMEs, but it also houses big-name corporates such as AOL and British Gas.

“In my seven years with the business, we have significantly expanded the portfolio and client base. [The Office Group is a dynamic and innovative business, with buildings in optimal locations operating in a market whose time has come. It’s a really hot sector and Blackstone recognises that,” Dorfman said.

“London is the leading city in the world for flexible office space and trends in the labour market show growing appetite for this type of work environment.”

Co-working businesses have been in high demand recently. SoftBank backed WeWork earlier this year, valuing the US start-up at almost $20 billion (£15.6 billion).

Rothschild advised The Office Group on the sale, originally looking for minority investors.

Blackstone, which had been looking to get into the hot flexibility office sector, opted to buy a big majority stake instead.

Blackstone’s other major property investments include Hilton Worldwide.