Transactions - APRIL 16, 2018

WeWork teams up with two investors to buy London asset for £530m

by Andrea Zander

Co-working group WeWork has teamed up with Danish pension fund PFA Ejendomme and property investment manager TH Real Estate to buy Devonshire Square, a 13-building estate, from Blackstone. The acquisition was reported in October 2017.

The sales price is estimated to be £580 million ($830 million). The company will own 10 percent of Devonshire Square Estate, while TH Real Estate and PFA Ejendomme A/S will hold 45 percent each.

WeWork has begun purchasing buildings as it seeks to diversify its global portfolio of short-term co-working spaces, according to Bloomberg.

It was reported WeWork purchased Chinese co-working startup Naked Hub for $400 million. The company entered China in 2016 with an office in Shanghai, and to date it has more than 10,000 members across 13 offices in Shanghai, Beijing and Hong Kong.

And in Seattle, WeWork entered to lease 61,000 square feet in the Weber Thompson-designed Watershed building at 900 N. 34th St., marking its first move into Seattle. In October 2017, The Registry reported that WeWork subleased the entire available office component of The Village at San Antonio Station in Mountain View, Calif., from LinkedIn. The two-building property totals just over 450,000 square feet. And it signed a 76,000-square-foot lease in a Bentall III property, a 492,000-square-foot, 32-story building, in Vancouver, British Columbia.

In addition, earlier this year, WeWork announced it was leasing 250,000 square feet of the Union Bank Building at 430 California St. in San Francisco.

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