The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
1
print
Print
OtherAna NarvaezThu 16 May 19

WeWork Starts $3bn Fund to Buy Property

083d1d2b-dd8f-4251-bd87-e5acfb9269aa

After confidentially filing for an initial public offering in April, WeWork’s parent company has launched a US$2.9 billion platform to buy the buildings it rents in.

WeWork, which rebranded as The We Company in early 2019, has launched “Ark” to manage and expand its real estate holdings.

Raising an initial US$2.9 billion (A$4.2bn) in equity capital, Ark will serve as WeWork’s “global real estate acquisition and management platform”, the company said in a press release.

Ark will buy out the various office stakes of WeWork co-founder Adam Neumann, who has effectively functioned as both landlord and CEO — creating potential for conflict of interest — the Wall Street Journal reported earlier this year.

The ambitious startup has launched a number of offshoots from the original co-working concept, with the company setting up retail ventures, schools (WeGrow) and co-living (WeLive) as it broadened its portfolio.

Ark is majority owned by The We Company, and has partnered with Canadian pension fund manager Ivanhoé Cambridge for the initial capital boost. Its mandate is to acquire, develop and manage real estate assets in global gateway cities and high-growth secondary markets.

Related: WeWork Acquires New York Retail Site for $1.1bn

WeWork will deploy its space-as-a-service model in Ark-owned properties.WeWork.


The Ark real estate arm will optimise WeWork assets and leverage its “extensive real estate experience”, Ark managing partner Rich Gomel said.

“Ark has been set up to capitalise on that opportunity and allow us to provide different partnership options for the real estate community to participate in the expansion of the We Company,” Gomel said.

The news comes as the company posted US$264 million in losses in its quarterly financial results and Japan’s Softbank flipped on plans for another round of investment in the company.

WeWork was valued at about US$47 billion after a private fundraising round as it looks set to follow similarly-sized startups Uber and Lyft into filing for IPOs.

OtherRetailOfficeInternationalAustraliaFinanceReal EstateOther
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
View All >
Markets

Private Credit’s Biggest Risk in Expansion: Sameer Chopra

Taryn Paris
Wynnum Masterplan hero
Development

Masterplan Revealed for Brisbane Bayside Super-Site

Phil Bartsch
Deicorp Five Dock Mixed-Use Precinct
Residential

Deicorp’s $1.8bn Inner-West Sydney Precinct Greenlit

Vanessa Croll
Kings Bay Village in Five Dock has become the first private project to advance under NSW's Parramatta Road renewal strat…
LATEST
Markets

Private Credit’s Biggest Risk in Expansion: Sameer Chopra

Taryn Paris
2 Min
Wynnum Masterplan hero
Development

Masterplan Revealed for Brisbane Bayside Super-Site

Phil Bartsch
4 Min
Deicorp Five Dock Mixed-Use Precinct
Residential

Deicorp’s $1.8bn Inner-West Sydney Precinct Greenlit

Vanessa Croll
3 Min
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/wework-starts-3bn-fund-to-buy-property