WeWork to pay $785M for Blackstone’s UK office complex

PE firm bought Devonshire Square in 2012

Devonshire Square, Adam Neumann and Jonathan Gray
Devonshire Square, Adam Neumann and Jonathan Gray

The ink is barely dry on WeWork’s deal to buy the Lord & Taylor building in Midtown, but the co-working giant is already in talks to buy its next trophy property.

WeWork agreed to buy the Blackstone Group’s London office complex Devonshire Square for around $785 million, Bloomberg reported.

The British East India Company developed the 12-building, 620,000-square-foot campus between 1768 and 1820. Blackstone bought it in 2012 for around 340 million pounds, or around $450 million, and renovated it.

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WeWork plans to take over the management of the entire complex and hired Eastdil Secured to find an acquisition loan. The co-working giant leases its properties, but earlier this year it launched a real estate investment fund in partnership with private equity firm Rhone Group to buy buildings outright.

On Tuesday, news broke that WeWork and Rhone agreed to buy the Lord & Taylor building in Midtown for $850 million.  [Bloomberg]Konrad Putzier