WeWork announced Monday that it plans to assume 89 additional leases across North American markets including Chicago, San Francisco, Seattle, Vancouver, and Washington D.C.
As it approaches its May hearing, the company posted in a blog post that the expected assumptions “complete WeWork’s real estate portfolio review in most of its markets across the United States and Canada.”
“With our lease rationalization across the United States and Canada nearly complete, WeWork is positioned for a strong and bright future,” Peter Greenspan, Global Head of Real Estate at WeWork stated in the announcement. “Strengthening our real estate portfolio could not have been possible without the collaboration of our landlord partners, to whom we are immensely grateful. Their partnership, combined with our improved operational efficiency and unwavering commitment to our members, sets the stage for WeWork’s success in this new chapter.”
With the completion of this phase in lease negotiations, WeWork stated that it has charted “a path forward for over 97% of its global, wholly owned lease portfolio.”
According to a report published by BisNow, the official filing also includes five additional leases that WeWork is proposing to reject — spanning across New York City, Atlanta, Nashville, Chicago and Vancouver. The locations can be found on page 21 of the document.
WeWork’s estimates that the updated portfolio will reduce total rent commitments by more than $11 billion, allowing the company to focus on improving operations in its most lucrative and sought-after locations.
The announcements related to leases in key North American markets arrives after WeWork previously revealed it had secured a “$450 million new-money financing facility” that will provide support “during its Chapter 11 cases and enable WeWork to promptly emerge from restructuring upon confirmation of the Plan.”
The deal, which must still be approved by WeWork’s Creditors, has Yardi Systems contributing $337 million through its affiliate Cupar Grimmond LLC. — which covers the majority of the coworking giant’s $450 million bankruptcy exit plan.
WeWork says it expects to operate more than 170 locations across the United States and Canada and 337 locations globally upon the conclusion of its restructuring efforts.
A final confirmation hearing is scheduled for May 30, and it will officially determine the final exit plan — potentially allowing WeWork to emerge from bankruptcy on its goal of May 31.
