Literacy Capital has invested in Cubo, the Derby-headquartered flexible office provider, acquiring a significant minority stake and providing capital to fund further growth of the business.
Founded in 2020 by property investors Marc and Rebecca Brough, Cubo has sites in Birmingham, Leeds, Nottingham, Sheffield and Derby.
Earlier this year, Cubo announced plans to almost double its footprint by the end of 2023. New workspaces in Nottingham, Birmingham, Manchester and Edinburgh are set to open in the coming months with sites in other regional towns and cities in the pipeline.
The investment from Literacy Capital will support Cubo’s expansion plans, which come at a time where the flex office market is experiencing unprecedented growth.
Cubo joins a roster of portfolio companies including Grayce, Oxygen Freejumping, Butternut Box and Antler Homes.
Marc Brough, CEO of Cubo, said: “We are committed to establishing a network of Cubo workspaces across the length and breadth of the UK. Our model of securing leases in prime locations across all the UK’s core cities is reaping massive benefits for our members with all our sites currently enjoying 98% occupancy.
“The opportunity to work with Literacy Capital will enable us to secure further sites quickly and fit-out in multiple locations simultaneously to meet the growing needs of both existing members and other corporate occupiers who have committed to work with Cubo as the business grows a nationwide platform.
“We look forward to capturing more of the market for hybrid working in 2023 and beyond.”
Richard Pindar, CEO of Literacy Capital, added: “Marc and his team have built a solid track record of investment in flexible office space and client relationships in just three years, which is a great foundation for long-term success in a rapidly growing market.
“Cubo is exactly the type of business we are looking to partner with, having executed its plan very well in regional cities which have been less well served by competitors. Cubo is also well positioned to double its footprint by the end of this year and progress plans further beyond this.
“We are delighted to be supporting Marc and the business on their continued rollout and look forward to supporting the company as growth is maintained and accelerated following our investment.”
Advisers on the deal were: Rigby & Co (Property Adviser); Brown J (Vendor Legal); Walker Morris (Vendor Property Legal); Deloitte (Corporate Finance); Marcussen (Tax); Addleshaw Goddard LLP (Investor Legal); Keystone (Investor); DSW (Investor Finance); GT (Vendor Finance).
