IWG has marked its first franchise sale as it sold its Japanese arm for £320 million to real estate company TKP Corporation.

The deal will provide TKP all of Regus Japan Holdings, including 130 coworking spaces. The company’s share price rose 23% after the deal was announced.

Now, TKP has the rights to use the Regus, Spaces, and Open Office brands and IWG will continue supporting the Japanese-based real estate firm through sales, marketing, operations, and technology for a share of its revenues.

“The transaction realises an attractive valuation for IWG’s shareholders and re-affirms our strategy of capital efficient growth in IWG’s global network with an increased emphasis on partnerships,” said Mark Dixon, chief executive of IWG, who will join TKP’s board as a non-executive director. “We look forward to working with TKP for many years to continue our network development in Japan.”