HPEF Capital Weighs $500 Million Executive Centre Sale

(Bloomberg) -- HPEF Capital Partners, the Asian buyout firm spun out of HSBC Holdings Plc, is considering a sale of serviced office operator The Executive Centre that could fetch more than $500 million, people with knowledge of the matter said.

HPEF is working with an adviser on the possible divestment, said the people, who asked not to be identified because the information is private. A formal sale process could start as soon as March, the people said. The company is expected to attract interest from private equity firms as well as other serviced office or co-working facility providers, they said.

Executive Centre has more than 120 locations across 30 cities in Asia Pacific, including One IFC in Hong Kong’s Central business district, its website shows. The region’s market for so-called flexible office space has been growing rapidly as overseas technology-focused firms such as WeWork Cos. have started to challenge more established local rivals.

HPEF previously tried to sell Executive Centre in 2014. Deliberations about a sale are at an early stage, and the owner could opt against pursuing a transaction, the people said. A representative for HPEF declined to comment, while a representative for Executive Centre couldn’t immediately be reached for comment.

Asia Pacific’s stock of flexible space, which includes serviced offices and co-working centers, grew at a 35.7 percent compound annual rate from 2014 to 2017, according to JLL. The market in the U.S. expanded 25.7 percent over the same period.

Executive Centre’s locations offer exclusive and shared work spaces, conference and meeting rooms as well as concierge services, according to its website.

--With assistance from Shawna Kwan.

To contact the reporters on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.net

To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Timothy Sifert

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