WeWork: An of­fice real es­tate bub­ble burst­ing?

The Week (US) - - Leisure -

The big­gest fi­nan­cial backer of WeWork, the real es­tate and co-work­ing com­pany, scaled back a planned new in­vest­ment from $16 bil­lion to $2 bil­lion, said Lionel Lau­rent and Mar­cus Ash­worth in Bloomberg .com. In­vestors in SoftBank, the Ja­panese com­pany that has funded WeWork’s ex­pan­sion, were re­lieved at the “sud­den bout of pru­dence.” The nine-year-old com­pany con­tin­ues to lose money even as it ex­pands into res­i­den­tial ren­tals and ed­u­ca­tion and re­brands it­self as the We Com­pany. SoftBank’s pull­back from WeWork could be a “turn­ing point not too dis­sim­i­lar to past real es­tate bub­bles.”

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