WeWork, Hony Capital and SoftBank form $500M JV to focus on China expansion

Partners are already backers in the $20B co-working giant

TRD NEW YORK /
Jul.July 27, 2017 05:25 PM

Adam Neumann and Softbank’s CEO Masayoshi Son

WeWork investors Hony Capital and SoftBank have created a $500 million joint venture on the side with the co-working company to help expand its footprint in China.

The Chinese private equity firm and the Japanese telecommunications company will own minority stakes in the investment vehicle, WeWork China, which the startup will manage, Bloomberg News reported.

WeWork has an equity stake in the new company, but the exact breakdown of investments was not known.

Christian Lee, WeWork’s head of global development, will run WeWork China out of the company’s regional headquarters in Shanghai.

The company now operates eight locations in China and plans to have about 15,000 members in the country by the end of the year.

WeWork earlier this month completed a $760 million, Series G fundraising round that valued the company at $20 billion, more than real estate investment trusts like Boston Properties and Vornado Realty Trust.

WeWork is facing competition in China from rivals that already have networks of office space and have similar names, such as UrWork. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Softbank CEO Masayoshi Son (Photo by Tomohiro Ohsumi/Getty Images)

“Tactically, I’ve made regrets. Strategically, I am unchanged:” The Masa Son interview

Proptech and the pandemic TRD Talks Live

Proptech and the pandemic: Will coronavirus change how real estate works?

(Illustration by Daniel Castro Maia)

Why real estate is still tangled up with the mob

Paul Massey’s B6 Real Estate hit with layoffs

Paul Massey’s B6 Real Estate hit with layoffs

81 Prospect Street at Dumbo Heights (Credit: Google Maps)

WeWork shuts Brooklyn location after employee gets Covid-19

arrow_forward_ios
Loading...