New York-based WeWork has signed to take 70,000 sq ft of offices at Fox Court in London’s Midtown as the $10bn office group for the creative sectors launches a search for a further 1.1m sq ft in the capital, CoStar News can reveal.
WeWork, advised by Kontor Real Estate, exchanged contracts on Friday to take around 70,000 sq ft at Fox Court from the building’s new owner, Kildaire, ahead of rival The Office Group. WeWork agreed a term of 20 years at a rent in the late £50s per sq ft.
The deal comes as WeWork plots to more than quadruple its footprint in London to 1.5m sq ft by the end of 2016.
The firm, which has already established itself as the largest tenant in Manhattan, has taken 353,814 sq ft in the city since its debut deal last February, leaving it 1.14m sq ft short of its latest target which, if hit, will make it one of the largest occupiers in London.
Rapidly growing WeWork was set up in 2010 by Adam Neumann and Miguel McKelvey and is thought to be valued at $10bn after raising $400m of capital from Fidelity Management & Research Co. in June. In the US, WorkWork kicked off the year with stated aims of growing its business from 23 locations to 60 within 12 months.
In addition to Fox Court, WeWork has already signed the following deals in London:
February 2014: 37,512 sq ft at Sea Containers House, 20-22 Upper Ground, SE1
November 2014: 11,994 sq ft at 2 Sheraton Street, W1
November 2014: 12,000 sq ft at 9 Devonshire Square, EC2
December 2014: 63,201 sq ft at 199 Bishopsgate, EC2
June 2015: 167,913 sq ft at Moor Place, 1 Fore Street Avenue, EC2
May 2015: 61,194 sq ft at Aldgate Tower, E1
The latest requirement is scaled up from the 500,000 sq ft CoStar News reported in January WeWork was looking for in London. The firm is expected to target non-City core submarkets such as Midtown and Aldgate, where creative industries are likely to be more attracted to.
Formed in a small office in New York, WeWork was valued at $5bn just six months ago. The company's main business is renting office space from landlords and dividing it up into incubator-like spaces with small offices and common areas designed to promote interaction.
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