CVC Capital Partners and HPEF are planning to sell their majority stake in The Executive Center, which is WeWork’s competitor in Hong Kong. HPEF owns 70% of the firm and CVC Capital Partners has a 20% stake.
The deal could reportedly be valued at $750 million and the investors plan to launch a sale process this week.
The private equity firms acquired stakes into the coworking operator back in 2014 from funds advised by HPEF, who specializes in deals where it buys majority stakes.
This move signs that the coworking industry is starting to slow in the area as financing in the sector cools down as well. Even WeWork recently backed out of at least five negotiations to take on new Hong Kong space this year.
