WeWork Receives $ 129.5 Million Strategic Investment From Cushman & Wakefield Days After NYSE Debut
We work, the New York-based real estate company that provides shared workspaces, announced that it has received a strategic investment of $ 150 million (approximately â¬ 129.57 million) from Cushman and Wakefield, a real estate services company that provides agency rental, tenant representation and investment management services.
As part of the deal, Cushman & Wakefield chief investment officer Nathaniel Robinson will join WeWork’s board of directors as an observer.
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The development comes after WeWork announced its IPO in October 2021. WeWork completed the transaction through a special purpose acquisition company, BowX Acquisition Corp. The combined company operates under the name WeWork Inc. and began trading on the New York Stock Exchange under the symbol “WE” on October 21, 2021.
Objective of strategic investment
Recently, the two companies announced their partnership to provide clients with office operations by combining hotel and technology services from WeWork and asset and facility management services from Cushman & Wakefield.
This development was positively received by major institutional property owners and Fortune 500 occupants, leading to opportunities for early pilot programs.
Brett White, Executive Chairman and CEO of Cushman & Wakefield, said, âThrough this partnership, Cushman & Wakefield will expand WeWork’s technology offerings around the tenant experience beyond their own branded spaces in the rest of the world. office market, giving our clients access to cutting-edge data. and information that promotes an optimal work experience and a return on investment.
The partnership has helped WeWork grow its new owner and tenant-focused offerings through two initiatives.
The first initiative will help building owners and occupant businesses improve the daily user experience with software from WeWork that will integrate traditional building features such as access control and reservation systems with hospitality programming and on-site approval. The technology will also provide access to critical asset usage data, guiding capital investments to support leasing, tenant or employee retention, operational efficiency, ESG / energy goals and ultimately return on investment.
The second initiative will allow owners to create new sources of income by operating flexible workspace centers within their portfolio. Over time, as these tenants move out of the flexible space, Cushman & Wakefield’s rental and project management teams will be able to convert tenants to more traditional office spaces, in the same building.
Marla Maloney, President of Asset Services at Cushman & Wakefield, adds, âMore than ever, real estate owners are looking for a competitive advantage to drive tenant demand for their offices. Meanwhile, today’s office workers have high expectations for a hands-on, customizable work experience, while allowing them to build community with other workers. Even at the very beginning of this partnership, we see many opportunities to evolve the âWeWork experienceâ much like we evolve our traditional building management services.
About Cushman & Wakefield
New York-based Cushman & Wakefield is a real estate services company that provides agency leasing, tenant representation and investment management services. In 2020, the company had $ 7.8 billion in revenue in key property management, facilities and projects, leasing, capital markets, appraisal and other services. .
The company claims to be one of the largest real estate services companies with approximately 50,000 employees in over 400 offices and 60 countries and is also listed on the New York Stock Exchange.
Flexible workspace provider
WeWork was founded in 2010 by Adam Neumann, Jean Pierre Van Der Berg and Miguel McKelvey. The company aims to create environments where people and businesses come together and do their best.
Since opening its first location in New York City, the company has grown into a global flexible spaces provider committed to providing flexible technology-driven solutions, inspiring spaces and community experiences. Currently, her space helps everyone from freelancers to Fortune 500s.
Recent developments in WeWork
Last month, the company launched a new â¬ 17 million initiative to boost the European startup ecosystem. Called Growth Campus Europe, the initiative aims to stimulate economic recovery in nine European countries: Germany, France, Spain, Belgium, the Netherlands, Poland, Sweden, Norway and the Czech Republic. .
Prior to that, in June, the company partnered with innovation consultancy BW Ventures to launch the first accelerator program for the music technology industry in Europe, based in Amsterdam. Music Tech Accelerator provides eight new companies with growth expertise and a private workspace, and helps them develop a commercially and technically feasible product.
The company is also partnering with TEDxAmsterdam for its brand new Impact program.
In April, WeWork partnered with BitPay and Coinbase to accept crypto payments. The company said it will pay owners and third-party partners in cryptocurrencies, where applicable, through Coinbase.
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