WeWork has leased roughly 110,000 square feet at Goldman Sachs’ 30 Hudson Street in Jersey City to be used as the global headquarters of Organon & Co., a planned spinoff of pharmaceutical company Merck. Business Insider noted that Organon plans to conduct an initial public offering in the first half of 2021 and move into the space at that time.
- Deal structure reflects WeWork’s new way of doing business: Merck, rather than WeWork itself, will serve as the guarantor of the lease. In its IPO filing last year, WeWork reported that it had $47 billion in lease commitments over the next 15 years, although only a small percentage was guaranteed by the parent company. [BI]