Schroders lifts IWG stake

Asset manager Schroders has increased its stake in serviced office operator IWG, citing potential for the company to snap up rivals that struggle in the wake of the coronavirus pandemic. Schroders now has a stake of just over 5% in IWG, an investment that a Schroders spokesperson said is held across various funds. The spokesperson added that some Schroders fund managers added to their position during and since IWG’s £320m equity raising. In a recent note to investors, the fund managers of the Schroder UK Mid Cap Fund wrote: “IWG’s fundraising both reassured the market and underlined that there are opportunities now which did not exist previously, in the form of attractively priced deals as competitors struggle. “Many companies are adapting to a new normal of a hub-and-spoke way of operating office space, with one central office and several regional ones, and on a more flexible basis, which speaks directly to the IWG offer.” IWG posted a pre-tax loss of £235.4m over the first half of the year, compared with a £35.5m profit a year earlier. Chief executive Mark Dixon said he expects a “particularly challenging” third quarter and is focusing on cutting costs – but reiterated that he anticipates an upturn in M&A opportunities in the sector. To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette Photo © Regus