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WeWork deal in Amsterdam at risk as German landlord wavers
[NEW YORK] A German asset manager has expressed interest in ditching WeWork as a potential tenant in an office building in Amsterdam, according to people with knowledge of the matter.
Union Investment, owned by Germany's DZ Bank, is weighing whether to cancel a deal to lease space to WeWork's parent We Company in the 5 Keizers complex in favour of an alternative tenant, said the people, who asked not to be identified because the talks are private. No decision has been made and Union Investment could still lease the space to WeWork, they said.
Representatives of Union Investment and WeWork declined to comment.
Months of turmoil at WeWork came to a head in recent weeks when the company scrapped a planned initial public offering after Adam Neumann stepped down as chief executive officer. The company, until recently one of the most valuable US startups, is on course to run out of cash to fund its operations unless it radically cuts costs in the next few months or raises substantial new capital.
That has prompted WeWork to pull back on some deals, including one to rent space in a Dublin office block, and to moderate its expansion plans. At the same time, some investors have withdrawn from negotiations to buy buildings where WeWork accounts for a large chunk of the rent. For example, Saudi Arabia-based Sidra Capital pulled out of a £90 million-pound (S$153 million) deal to purchase a London building leased to WeWork.