Business Irish

Wednesday 15 August 2018

WeWork bets big on City office purchase

Shared office working has boomed in recent years
Shared office working has boomed in recent years

Jack Sidders

Shared office provider WeWork and two other companies paid about £580m (€672m) for an office complex in the City of London district, two people with knowledge of the deal said.

WeWork has begun purchasing buildings as it seeks to diversify its global portfolio of short-term co-working spaces, which are mainly leased from landlords and sublet to startups and technology firms.

It will own 10pc of Devonshire Square Estate, while TH Real Estate and Denmark's PFA Ejendomme will hold 45pc each, one of the people said. Both asked not to be identified because the details are private.

The US business announced yesterday that the deal had been completed, without giving the purchase price. A spokeswoman for the venture declined to comment on the price or share of ownership. Blackstone Group, which sold the complex, declined to comment.

WeWork, which is backed by Softbank Group, entered negotiations to buy the complex last year, Bloomberg News reported in October. The company later brought PFA and TH Real Estate, a unit of Nuveen Asset Management, into the deal, the person said.

"The opportunity we have in Devonshire Square underlines the WeWork effect," WeWork senior executive Rich Gomel said in an emailed statement. "By fully activating the estate, we will unlock tremendous potential and maximize value." (Bloomberg)

Irish Independent

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