By Hellen Zaboulani
WeWork has scrapped plans to rent space in a Dublin office block. As reported by Bloomberg News, the embattled shared work-space giant had been in negotiations to lease space at Central Quay, an office block in Dublin’s docklands. As per a source who did not wish to be identified, the deal has fallen through. The negotiations, with block owner Hibernia REIT, won’t continue because of specific factors about the building, but other deals in Dublin are still going ahead, one source said. “We’re committed to Dublin and excited to continue growing such a strong community here in the city,” said an emailed statement from a WeWork spokeswoman. “We consider many buildings in the markets in which we’re located but, of course, may not decide to proceed with all of them. We look forward to continuing to work with the Dublin real estate community to bring great office space, design and amenities to market.” WeWork still has roughly 400,000 square feet of office space spanning over five locations in Ireland’s capital city. A representative for Hibernia REIT did not comment.
WeWork, and parent company WeCo, had more than its fair share of turmoil last month. The company has for the time being scrapped long-anticipated plans for an initial public offering. Major company executives stepped down, including co-founder and Chief Executive Adam Neumann. The company’s credit grade was also cut by Fitch Ratings, which noted its “uncertain liquidity profile in the absence of its earlier plan to raise at least $3 billion in an IPO.” To top it off, Saudi Arabia-based Sidra Capital pulled out of a $110 million deal to purchase a building leased to WeWork, further attesting to sinking world-wide confidence in the fast-growing startup. Negotiations on the sale of WeWork Waterloo, which the company described as the biggest co-working site in the world, are also reportedly stalled.
Artie Minson, former WeWork co-president and chief financial officer, and Sebastian Gunningham, former vice chairman, have now been named co-CEOs of the company. “We would like to thank Adam for his vision and his passion in building WeWork over the past 9 years. Our innovative membership model, beautiful designs and inventive community offerings have changed the way individuals and enterprises around the world think about their workspaces. It is an incredible honor to lead WeWork during this important moment in the company’s history,” Minson and Gunningham said in a statement, after being appointed. “Our core business is strong and we will be taking clear actions to balance WeWork’s high growth, profitability and unique member experience while also evaluating the optimal timing for an IPO. We are committed to the continued success of our members, partners, employees and shareholders on this new journey.”
