Global flexible workspace operator IWG has sold its master franchise in Japan to real estate company Mitsubishi Estate Co (MEC) for an undisclosed price. The franchise was formerly held by TKP Group and 100% of the shares of Regus Japan Holdings KK, which operates 172 flexible workspace locations in the country, have now transferred to MEC
It is anticipated completion of the deal will occur in February next year and it is conditional only on Japanese anti-trust clearance.
MEC now has exclusive rights to the use of IWG brands in Japan, including Regus and Spaces, and the agreement includes a development plan which will add significantly to IWG’s network in Japan as demand for hybrid working continues to accelerate.
Mark Dixon, founder and CEO of IWG said: “We are very pleased to announce the Mitsubishi Estate Group as our new strategic partner in Japan. A commitment of this scale by one of the world’s largest real estate companies underpins the irreversible shift towards hybrid and the model’s increasing popularity globally.
“Even in Japan, one of the hitherto most conservative and traditional markets, the rapidly growing adoption of hybrid is an important driver behind our expansion plans. Over the next five years, the adoption of hybrid will reach an important milestone with more than 50% of professional employees set to embrace the hybrid model rather than working from a single location.
“We thank TKP Group, not only for their partnership over the past three years, but for what we have achieved together over this period. We look forward to working closely with Mitsubishi to accelerate the growth of the business across the country, as companies of all sizes both in Japan and globally plan for a hybrid future.”
