London Council to Miss Out on Millions Due to WeWork Rent Waiver
A small London council, Spelthorne, could miss out on millions of pounds after WeWork asked to waive 18 months of rental payments.
In exchange, the shared workspace company — which is one of Spelthorne Borough Council’s biggest tenants — has offered a five-year extension on its lease.
The authority has reportedly borrowed more than £1bn to fund commercial property investments. Although it could stand to gain long-term if WeWork survives the pandemic, the immediate loss would hit the council hard at a time when its own finances and resources are under immense strain due to the pandemic.
WeWork currently occupies three floors at 12 Hammersmith Grove, an office building in West London that the council bought two years ago for £170m.
The request to waive rental payments would result in £4.5m of lost revenue for the council.
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