- HPEF Capital Partners is considering the sale of serviced office operator The Executive Centre.
- The formal sale process could begin as early as March, with the company expected to generate offers above $500 million.
- Founded in 1994, The Executive Centre operates over 125 locations across 30 Asian cities.
Bloomberg reported Friday that “HPEF Capital Partners, the Asian buyout firm spun out of HSBC Holdings Plc, is considering a sale of serviced office operator The Executive Centre that could fetch more than $500 million.”
According to Bloomberg sources, the formal sale process could begin as early as March. Potential buyers could include investors, real estate owners, and rival flexible workspace firms.
The Executive Centre was founded in 1994 and it currently operates over 125 locations across 30 Asian cities. HPEF tried to sell TEC back in 2014. In 2017, as competition increased in the APAC region and with WeWork’s entrance into the market, The Executive Centre went through what it called a “serviced office face-lift” with the goal of bettering its ability to compete with new flexible workspace entrants.
The news comes shortly after rumors began that WeWork is eyeing an IPO and the International Workplace Group is seeking to sell Spaces.
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Asia-Pacific is the fastest growing flexible workspace market. According to reports, in some APAC markets, the industry has grown over 50% over the course of 12 months. Furthermore, the flexible workspace market stock in Asia managed by major flexible space operators grew 150% from 2014 to 2017.
Suggested reading: Why India’s Coworking Market is the One to Watch in 2019
Demand of flexible workspaces in APAC is being driven by large corporates and the region has also experienced increased merger and acquisition activity over the past year. Property owners in the APAC region — TICON, CapitaLand, and Vanke — have also turned to flexible workspaces as a way to increased property value and generate new revenue sources.