Flex office provider secures eight-figure investment

Cubo has announced it has received eight-figure backing from an investment firm to facilitate its continued UK expansion.

The flex office provider, which began in 2020 with its first site in Derby, has secured the investment from Literacy Capital.

It is backing Cubo, which has ambitions to have a presence in all leading commercial regions by 2025 and to take the brand internationally.

Marc Brough, chief executive of Cubo, said: “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, chief executive of Literacy Capital, said: “Cubo’s tailored approach to creating client office spaces in prime city real estate is clearly a winning formula given the calibre of its tenants.

“We are delighted to be supporting their continued roll out and expect the rapid growth to continue.”

Founded in 2020 by Marc and Rebecca Brough, Cubo has established itself as the UK’s fastest growing provider of bespoke high-end flex office and co-working space in the Midlands and North.

As well as Derby, it has sites in Nottingham, Sheffield, Leeds and Birmingham, with further openings and expansions planned, beginning with the launch of a brand-new centre on Edinburgh’s prestigious Princes Street in July.

Earlier this year, Cubo announced plans to almost double its footprint by the end of 2023.

In addition to increasing capacity within high demand zones such as Nottingham and Birmingham, sites in other leading regional towns and cities have been identified and selected, and those key locations are set to be announced shortly.

Marc said: “My team and I 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 an average occupancy rate of 98%.”

Among the companies involved in making the deal happen was Rigby & Co.

Richard Pindar said: “Cubo is exactly the sort of business we are looking to partner with.

“It has grown very quickly as an independent entity, but Marc and his team are savvy enough to recognise that partnering with someone at this stage is the best way to create a sustainable and valuable business.

“It operates in a rapidly growing market where there is a lot of focus on London, but the regional opportunity is significant if you have the right model.”