M7 Real Estate has struck an innovative profit-share deal with serviced offices firm Regus that will see it rapidly build up its footprint across the fund and asset manager’s 3m sq ft office portfolio. The deal’s structure means Regus will share profits with M7 rather than pay rent through traditional leases. For Regus, the relationship provides a large portfolio into which to expand and minimises fixed costs and reduces risk. For M7, which often buys high-yielding, opportunistic portfolios with relatively high vacancy, the deal provides greater potential returns on its investment compared with those achievable at existing rental levels. It also absorbs vacant space and saves on empty rates charges. The pair have already agreed deals on six sites in the UK and similar deals are expected to be rapidly expanded across continental Europe. Regus sites are generally between 7,500 sq ft and 15,000 sq ft. All the content from this weekís magazine, including this article, is available in the new app. Richard Croft, chief executive of M7, said: “This transaction is a further demonstration of M7’s ability to take an entrepreneurial and innovative approach to improving clients’ returns and to create mutually beneficial partnerships with leading global businesses such as Regus. “We have an extensive pan-European portfolio across our various funds and mandates, which will benefit from this relationship while at the same time providing Regus with scale and product across the Continent that not many landlords can provide.” M7’s office portfolio is valued at close to €300m (£237m) and it has joint ventures with Oaktree Capital Management, Starwood Capital and M&G Investments. For Regus, the relationship provides a large portfolio into which to expand and minimises fixed costs and reduces risk. For M7, which often buys high-yielding, opportunistic portfolios with relatively high vacancy, the deal provides greater potential returns on its investment compared with those achievable at existing rental levels. It also absorbs vacant space and saves on empty rates charges. The pair have already agreed deals on six sites in the UK and similar deals are expected to be rapidly expanded across continental Europe. Regus sites are generally between 7,500 sq ft and 15,000 sq ft. All the content from this weekís magazine, including this article, is available in the new app. Richard Croft, chief executive of M7, said: “This transaction is a further demonstration of M7’s ability to take an entrepreneurial and innovative approach to improving clients’ returns and to create mutually beneficial partnerships with leading global businesses such as Regus. “We have an extensive pan-European portfolio across our various funds and mandates, which will benefit from this relationship while at the same time providing Regus with scale and product across the Continent that not many landlords can provide.” M7’s office portfolio is valued at close to €300m (£237m) and it has joint ventures with Oaktree Capital Management, Starwood Capital and M&G Investments. The pair have already agreed deals on six sites in the UK and similar deals are expected to be rapidly expanded across continental Europe. Regus sites are generally between 7,500 sq ft and 15,000 sq ft. Richard Croft, chief executive of M7, said: “This transaction is a further demonstration of M7’s ability to take an entrepreneurial and innovative approach to improving clients’ returns and to create mutually beneficial partnerships with leading global businesses such as Regus. “We have an extensive pan-European portfolio across our various funds and mandates, which will benefit from this relationship while at the same time providing Regus with scale and product across the Continent that not many landlords can provide.” M7’s office portfolio is valued at close to €300m (£237m) and it has joint ventures with Oaktree Capital Management, Starwood Capital and M&G Investments. “We have an extensive pan-European portfolio across our various funds and mandates, which will benefit from this relationship while at the same time providing Regus with scale and product across the Continent that not many landlords can provide.” M7’s office portfolio is valued at close to €300m (£237m) and it has joint ventures with Oaktree Capital Management, Starwood Capital and M&G Investments. M7’s office portfolio is valued at close to €300m (£237m) and it has joint ventures with Oaktree Capital Management, Starwood Capital and M&G Investments.
Regus has entered into a partnership with M7 Real Estate, which will see Regus share profits with M7 in place of rent.This deal creates opportunities for Regus to expand its portfolio while minimising fixed costs and reducing rent. The companies have agreed deals on six sites in the UK and plan to expand rapidly across M7's portfolio of 455 properties. Relevance: The six additional M7 sites bring the YTD total of new properties for Regus to 18 and its total number of locations worldwide to 2,787.