WeWork makes its largest asset acquisition to date

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WeWork makes its largest asset acquisition to date from other developments in London

A major real estate deal was recently made in the City of London. WeWork, the US coworking giant, has chosen the exciting Devonshire Square complex between Shoreditch and the City, to make its largest acquisition on British soil.

Funded by Softbank and currently valued at $20bn, WeWork joined forces with Danish pension fund PFA Ejendomme and property investment managers TH Real Estate to buy the 13-building estate for £580m from Blackstone.

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WeWork will occupy about a third of the floor space, as it acquired a 10% stake in the property, while fund manager TH Real Estate and Danish pension fund PFA Ejendomme will own 45% each.

Undoubtedly, WeWork is re-shaping the global office market at an unprecedented pace. Devonshire Square is WeWork’s third property acquisition in London — it already owns 120 Moorgate and 51 Eastcheap jointly with private equity firm Rhône Capital. According to Cushman & Wakefield, flexible office space providers leased commercial property across London in 2017, to make up more than a fifth of all office leases across the capital.

Described as a “transformational and iconic asset” by WeWork’s senior executive Rich Gomel, Devonshire Square marks another milestone in the UK for the co-working giant.

WeWork has quickly become the largest corporate office occupier in central London, with British Land and other rivals, competing for a place in the flexible office leasing map.