SINGAPORE (EDGEPROP) - Hybrid work solutions brand IWG has announced the sale of its master franchise in Japan to Mitsubishi Estate Co (MEC). According to a Dec 12 press release by IWG, MEC is acquiring the master franchise from TKP Group by purchasing 100% of the shares in Regus Japan Holdings K.K., which operates 172 flexible workspace locations in Japan.

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The master franchise agreement provides MEC with exclusive rights to the use of IWG brands in Japan, including Regus and Spaces. IWG will provide services and support to MEC, including access to its brand portfolio, global network, sales and marketing platform, and operational infrastructure and technology, in return for an ongoing platform fee linked to system-wide revenues in Japan.

Besides operating the existing centres, the agreement includes a development plan which IWG says will “add significantly” to its network in Japan. “We are very pleased to announce the Mitsubishi Estate Group as our new strategic partner in Japan,” adds Mark Dixon, founder and CEO of IWG. “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.”

MEC is one of Japan’s largest real estate companies, with a portfolio spanning offices, residential, retail, hotel, logistics, and airport operation. It also has an international portfolio, with a footprint across the US, the UK and Asia.

The transaction is expected to complete in February 2023, subject to Japanese antitrust clearance.