(PRWEB) April 14, 2005
After successfully establishing a foothold in California and the state of Georgia, Interactive Offices Worldwide (ÂInteractiveÂ) has identified new prospects for expansion and acquired 4 new business centers in Dallas, Atlanta, Denver and Memphis, respectively. Research indicated that Atlanta is the most prosperous business area in North America for business centers encouraging Interactive to open yet another centre in Atlanta. The chairman of Interactive Offices Worldwide, Andrew Gyenes, was impressed with the local business climate and the selection of Class "A" facilities in the greater Atlanta area. The potential for growth and success in Atlanta's business centre industry was very clear.
Mr. Gyenes has made close alliances with regional developers in Dallas, Atlanta, Denver and Memphis and has agreed to acquire existing centers that mirror Interactive's formula. In the last year members of Interactive management have made numerous trips to international location to research, negotiate and finalize details of the four transactions and expand its footprint in the US business centre market.
Encouraged by the company's successful expansion into California and Atlanta in 2001-2002, Interactive will continue to search out other opportunities in international markets. Long-term expansion plans will focus on developing a larger presence in North America and exploring opportunities in other global business centers.
Serviced Office Industry Leader Interactive Offices Worldwide: Business Description
Interactive Offices Worldwide ("Interactive") is an industry leader in the serviced office industry (business centre owner) in Canada and the United States, with over 9 years of recognition by the ConsumerÂs Choice Award for business excellence.
Interactive anticipates generating significant growth by way of acquisition, as a result of increasing its scale and servicing the ultra-hot office rental market in high growth cities in the US and Canada.
Interactive believes that other than The Regus Group that has an international network of 750 business centers (ÂRegusÂ), the serviced office industry leader, the international serviced office industry is very fragmented and characterized by many, small, independent operations, and that this will result in opportunities for larger operations in the industry, such as Interactive, to consolidate smaller operations so that the burden of competition with large scale players like Regus can be significantly alleviated and a second global player in the serviced office industry can emerge. Interactive believes that an aggressive acquisition strategy will significantly enhance its ability to achieve its growth targets.
The serviced office industry provides a highly demanded service, renting fully serviced offices to companies of all sizes equipped with cutting edge technology infrastructure and professional management team to offer the solutions you require for all of its tenants office needs. Total combined operating revenues of the real estate rental and leasing and property management industries increased by 4.4% to $46.1 billion in 2003, compared to $44.1 billion in 2002. The non-residential sector grew by 6.9% and now accounts for $24.7 billion of the total operating revenue. The property management sector grew by 8.0% to $2.5 billion in 2003.
The real estate rental and leasing and property management industries remained generally profitable. The profit margin before tax increased slightly in 2003 to 20.0%, up from 19.0% in 2002.
The serviced office industry business is also characterized by a high level of recurring revenues. However, it is an industry which is highly fragmented and which is going through transition.
Interactive believes that the Canadian and US business centre industry is comprised, in great part, of "mom & pop" operations, although there are a few "mini-companies". Small size can preclude access to capital and sophisticated management systems, as well as the ability to deploy successful marketing and branding strategies. At present Interactive owns 28 business centers and making it the largest business centre owner in Canada. The company believes that because of its existing large footprint in the business centre arena by acquiring independent business centre operations and mini-companies it can become a global player.
As a result of the need of small mom and pop shops to compete with large scale international business centre companies, Interactive believes that a number of operations will become available for purchase creating consolidation opportunities. To Interactive's knowledge, there is not currently any other, Canadian, industry consolidator.
Interactive Offices Worldwide (Interactive) was established in 1990. In 1999, Interactive embarked on a strategy to consolidate the Greater Toronto serviced office industry (business centre) Business. Through the sheer strength of management and through an aggressive, acquisition strategy, Interactive started to takeover leases of seven business centers in the greater Toronto area, replacing their management and implementing InteractiveÂs proven business centre operation method. The business was created by leasing floors in prestigious business towers in the greater Toronto area and subdividing them into re-rental offices, through prestigious business towers in the greater Toronto area.
Interactive currently owns 28 business centers in locations throughout Canada and the US, which gives it a great start in becoming a leading industry consolidator.
Growth in revenues is expected to come, aside from acquisitions, through normal expansion in market share. Growth in net income is expected to come through economies of scale and efficiencies.
Management's goal is to replicate the Canadian operation in other major centers in the United States and in Europe.
Andrew Gyenes - Chairman
A true entrepreneur, Mr. Gyenes started his colorful career as a cinematographer in Budapest, Hungary. He immigrated to Canada in 1979 where he became a real estate broker and started a number of successful businesses.
Mr. Gyenes has had a successful career as an entrepreneur focusing his energies on identifying opportunities in a variety of industries and then personally managing their start-ups and growth. His specific skill sets include integrating new technology and management systems as well as assembling and managing cohesive teams. Mr. Gyenes has started up businesses in real estate, hospitality, manufacturing and tourism. Mr. Gyenes has been in the real estate industry for almost three decades. Presently Mr. GyenesÂ company Interactive, an established Canadian business center company has 28 locations.
In 1990 Mr. Gyenes was in the process of moving his real estate brokerage company to a business center he developed a plan that he felt would improve the building's operation and proposed a management contract to the owner - the owner accepted and Andrew Gyenes officially entered the business center industry and Interactive Offices Worldwide (formerly Interac) was begun. Interactive Canada's Premier Business Centre Owner/Operator has 28 offices in Canada and the US. Mr. Gyenes's decisive management at the helm fueled the organization's rapid expansion, and has maintained the firm's growth and success over the tumultuous real estate rental market conditions of the past few years. By focusing the energies of the organization and applying his wealth of experience, Mr. Gyenes is poised to take Interactive to even greater heights.
Mr. Gyenes founded Interactive in 1990 in Toronto, Canada,
For Further Information Contact:
For additional information, contact:
Interactive Offices Worldwide
1 Dundas Street West, Suite 2500
Toronto, Ontario M5G 1Z3
Chairman & CEO
Phone: (416) 979-7800
Interactive Offices Worldwide
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