In a statement published Thursday, WeWork said that it has finalized its lease portfolio in seven key U.S. markets: Columbus, Detroit, Las Vegas, Portland, Sacramento, San Jose, and Tampa.
The company suggests it can now take its best step forward in these markets by focusing on its “strongest and most popular locations where it plans to operate for the future.”
In the statement, WeWork’s Global Head of Real Estate Peter Greenspan, also expressed gratitude towards landlords in these markets for their collaboration and partnership throughout the process.
The news regarding leases in the key U.S. markets comes shortly after WeWork 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.”
Most notably, the amended financing, 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 proposed $450 million bankruptcy exit strategy and gives Yardi a 60% controlling share.
Additionally, WeWork says it has determined a path forward for over “90% of its global, wholly-owned lease portfolio,” resulting in a reduction of total future rent commitments by more than $8 billion (or by 40%).
WeWork now boasts operating “over 24 million square feet of real estate across more than 330 locations in over 20 countries worldwide.”
The company also reaffirmed its dedication to completing its restructuring by May 31, citing its goal to remain a leader in the flexible workplace industry post-bankruptcy.
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.
