New WeWork Suitor Emerges
Potential bidders are eyeing WeWork and its footprint, which includes this 44,313-square-foot space at 250 East 200 South in Salt Lake City. Image courtesy of WeWork
A home rental platform is the latest suitor to emerge in pursuit of WeWork. Rentberry said on Friday that it will unveil a proposal this week to acquire the flexible office provider, which filed for Chapter 11 bankruptcy protection in November.
Rentberry did not disclose financial details or the expected date of the offer. In a statement, the San Francisco-based company said that WeWork’s model would complement Rentberry’s proprietary Flexible Living model, which enables residents to rent furnished properties without security deposits for as much as one year. The resulting network would cater to the lifestyle needs of mobile professionals, the company added.
The company’s partners would include Berkeley Hills Capital, described on its website as a venture capital firm focused on early-stage companies in real estate, biotechnology, health-care and other sectors. Of note, Rentberry’s also cited a collaboration with PJT Partners, a New York City-based investment bank that also serves as an adviser to WeWork.
Buyout rumors
Rentberry’s planned bid follows widely circulated reports by CNBC, DealBook and other sources this month that WeWork’s ousted founder, Adam Neumann, wants to buy the company out of bankruptcy. Neumann initially said that his buyout plan had backing from Third Point, the opportunistic investment manager led by investor Dan Loeb. But Third Point later told CNBC that any discussions were preliminary and that the company “has not made a commitment” to a deal.
Meanwhile, WeWork is publicly expressing no interest in accepting a buyout offer. In a Feb. 6 statement that did not mention the reports of Neumann’s potential bid, the company said that it regularly receives “expressions of interest,” which it reviews in concert with its advisers. WeWork added that its initiatives, which emphasize restructuring the business and “addressing unsustainable rent expenses,” will position the company as an independent company for the long term.
In a separate statement, the company said on Jan. 29 that it has achieved more than $1.5 billion in rent savings through 60-plus lease agreements. It stated that it has filed motions in court to assume leases at four properties:
71 Fifth Avenue, New York City (owner: Madison Capital)
The Watermark, Tempe, Ariz. (Fenix Development)
800 North High Street, Columbus (Crawford Hoyer)
901 N. Glebe Rd., Arlington, Va. (Piedmont Office Realty Trust)
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