WeWork sells control of its China division

U.S. office-sharing firm WeWork on Thursday said it will sell control of its China division to one of its investors, private equity firm Trustbridge Partners, as it steps back from a competitive market where it has suffered low-occupancy rates.

The deal effectively offloads the China unit away from the parent, which has faced fundraising issues since a failed attempt to go public in 2019. WeWork said it will maintain a minority stake and “participating interest” in WeWork China and that it will receive an annual fee from the unit for use of the WeWork brand.

Concurrent with the deal, the division has received $200 million in funding from existing investors, WeWork said. Michael Jiang of Trustbridge Partners will serve as WeWork China’s acting chief executive officer.