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WeWork Companies, the global arm of the coworking space provider, has completed its acquisition of a 49.9% stake in WeWork Brasil, the company announced on Monday. The deal was approved by the Administrative Council for Economic Defense.
Previously a joint venture between WeWork and SoftBank, the sale of SoftBank’s share in the business was confirmed at the end of January, according to Valor International.
WeWork has faced financial challenges since the pandemic, filing for Chapter 11 bankruptcy in the U.S. in 2023 and completing the process in 2024.
In 2024, WeWork Brasil faced eviction notices from real estate investment funds due to delays of up to three months in paying rent. The company’s business model involves leasing floors or buildings and subleasing smaller, fully furnished office spaces with services.
Earlier in 2024, Bruna Neves, WeWork’s top executive in Brazil, mentioned in an interview that the company struggled with rent contract adjustments during the pandemic, as the IGP-M index used for its contracts surged by over 30% annually. “Our costs often rose faster than we could make up for,” she said.
To address the situation, WeWork renegotiated some contracts, cleared overdue rent, and vacated certain spaces. As of March 2024, WeWork operates 28 locations across São Paulo, Rio de Janeiro, Minas Gerais, and Rio Grande do Sul, down from 32.
In a statement, WeWork emphasized its focus on maintaining financially sustainable operations. John Santora, global CEO, highlighted that reintegrating WeWork Brasil into the company’s global structure is a crucial step for strengthening its position in the country and Latin American market.
The unification of these teams may help maintain WeWork’s status as a leading global real estate platform for businesses of all sizes.
