IWG Takes Over Former WeWork Facility In Hong Kong
The world’s largest flexible workspace operator IWG has taken over an office recently vacated by its rival WeWork.
IWG used its war chest to secure the lease on 30,000 square feet of office space in Hong Kong’s Causeway Bay district.
This will be the first former WeWork facility taken over by IWG and highlights the difference between the two firms who have arguably been the top two rivals in the coworking industry.
WeWork has experienced a tumultuous year after canceling efforts to go public, which led to major layoffs and its co-founder Adam Neumann stepping down from the role of CEO. Since then, the company’s plans for expansion have been halted and its valuation has dwindled.
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“IWG downplayed the hype [around coworking] and acted more conservatively. The rationale for the recent equity raise is clear — invest in distressed opportunities, whether that’s piecemeal site acquisitions or M&A,” said Hemant Kotak, head of UK research at property firm CBRE.
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