Flex Office Provider Mindspace Gets $72M For Further Expansion
It plans to grow its footprint in Europe, the US and Israel.
Mindspace, a global flex office provider, has secured $72 million for further expansion in Europe, the US and Israel.
The round of new investments was led by Harel Insurance Investments and Financial Services Ltd., More Provident Funds, Shalom Meckenzie, Arkin Holdings. Existing investors including: Yoav Harlap, Kobi Rogovin and Globalworth increased their stake in the company.
Barak Capital Underwriting, Ltd. served as the investment banker in the transaction.
“Today, our locations are almost at full occupancy and the current investment led by Harel Insurance and More Provident Funds is intended to fulfill the rising demand in the market and to launch new locations in partnership with landlords worldwide”, said Mindspace CEO and Co-founder Dan Zakai, in prepared remarks.
Currently Mindspace operates 32 branches in 17 cities in seven countries, spread over 1 million square feet.
In the last year, the firm launched branches in London, Tel Aviv, Philadelphia and a new hub and spoke location outside Tel Aviv.
About 41% of the occupiers in its locations are large enterprises and corporations and 38% are small and medium-sized companies.
In March, Mindspace launched “Hybrid”, a product for companies and individuals who work under a hybrid model, combining work from home and in-office.
In its announcement of the funding, Mindspace pointed out the flex market grew while a number of sectors in the office space took a hit in the pandemic.
CBRE, for example, is predicting in two years 43% of occupiers will have 10% to 50% of their portfolio dedicated to flex while 17% will have more than half of their portfolio dedicated to flex.
The pandemic introduced new options for tenants, with companies negotiating leases arrangement with shorter terms, flexibility to exit, use of less space, and support drop-in availability for employees. “The next step in the continuum is to create a plan of hybrid work which includes having a core main office and then flexible policies around remote work,” said John Arenas, CEO and chairman of Serendipity Labs.