WeWork has set up a new fund to purchase commercial properties that it will then lease.
The move is a change from its traditional strategy of leasing space from other building owners.
Most of the money in the fund will come from outside investors, but WeWork will have majority control over it.
CEO Adam Neumann plans to sell to the fund properties he’s purchased stakes in that WeWork has leased space in.
Visit Business Insider’s homepage for more stories.
WeWork CEO Adam Neumman has a new plan for the $47 billion office-sharing company: Instead of subleasing space in other people’s buildings, he wants WeWork to buy its own buildings.
WeWork announced Wednesday that it has set up an investment fund called ARK that will be used to purchase commercial properties that the fund will lease to WeWork. The fund will be separate from WeWork and most of the money it will invest will come from outside sources, according to Bloomberg Businessweek, which first reported the new fund. But WeWork will be the majority owner of ARK, the company said in a statement.
ARK will have $2.9 billion in cash to invest, $1 billion of which will come from Ivanhoé Cambridge, a Canadian real …read more
Source:: Businessinsider – Strategy