IWG (AKA Regus) has made its first move to capitalize on the retrenchment of WeWork, taking over a Hong Kong office vacated by its rival, the Financial Times reported. The switch in tenants underscores the divergence in fortunes between the two companies. Although Shares of IWG are down 34% year-to-date, the company has a market cap of $2.91 billion, which is greater than SoftBank’s current valuation of WeWork.
- Worth Noting: IWG has raised a $430 million war chest via a share placing, which it intends to use to fund an expansion and invest in distressed opportunities.
- WeWork reconsidering leases: WeWork CEO Sandeep Mathrani suggested that the company may have to exit or rethink one in five of its leases. “If I look at the portfolio, like anyone’s portfolio, it’s 80:20. Eighty percent of WeWork’s leases are great, 20 percent need to be restructured.” The firm is now in talks with developer Cain Hoy Enterprises to slash the amount of office space it had agreed to occupy in a major project in London’s Shoreditch district, according to Bloomberg. [FT+Bloomberg]