Blackstone is exploring a £1.5bn sale of The Office Group as it looks to capitalise on the collapse of rival WeWork.
The private equity giant has held informal talks with advisers to explore a possible exit from the company amid renewed interest in flexible office space.
City sources said the company was targeting a deal in the first quarter of 2025, with a sale or stock market listing among potential options. They cautioned that discussions were at an early stage.
Blackstone acquired a majority stake in The Office Group in 2017 in a bet on growing demand for flexible working space.
The pandemic dealt a hammer blow to the sector as repeated lockdowns sparked the beginning of the work from home era. But demand has since picked up as a growing number of companies adopt a hybrid approach to working.
In 2022, The Office Group struck a deal to merge with Fora, a rival flexible office space provider with locations across London and in Germany. Fora is backed by Brockton Capital, a London-based property investment firm.
The tie-up created one of the largest players in the market, with more than 3 million square feet of office space and a reported valuation of £1.5bn.
The company’s offices serve around 29,000 employers, including pharmaceutical giant GSK and online grocery firm Ocado.
The Office Group, which has now rebranded as Fora, has also benefited from the collapse of WeWork, the controversial office company founded by Adam Neumann that declared bankruptcy late last year.