Fast Retailing family explores options for WeWork’s Covent Garden site
The family office of Uniqlo founder Tadashi Yanai has begun exploratory talks with a flex provider to replace distressed tenant WeWork at its Covent Garden premises at 22 Long Acre, WC2.
The family behind the Japanese multinational retail holding company Fast Retailing, which is the parent company of brands such as Uniqlo and Theory, is in early discussions with flex provider Re-Defined to take on the space after acquiring the property in recent months.
Re-Defined has taken on five former WeWork spaces in recent months, including Louisa Ryland House in Birmingham, which was fully occupied by WeWork. This has included a major refurbishment of 35,000 sq ft of workspace across four floors.
The family office of Uniqlo founder Tadashi Yanai has begun exploratory talks with a flex provider to replace distressed tenant WeWork at its Covent Garden premises at 22 Long Acre, WC2.
The family behind the Japanese multinational retail holding company Fast Retailing, which is the parent company of brands such as Uniqlo and Theory, is in early discussions with flex provider Re-Defined to take on the space after acquiring the property in recent months.
Re-Defined has taken on five former WeWork spaces in recent months, including Louisa Ryland House in Birmingham, which was fully occupied by WeWork. This has included a major refurbishment of 35,000 sq ft of workspace across four floors.
However, sources said it is also considering a step away from flex, and is equally looking at leasing the space to more traditional occupier types.
The family office is thought to have acquired the freehold and leasehold to 19-25 Long Acre and 29-32 Floral Street, WC2, from Shaftesbury Capital and the Church Commissioners late last year. It is also understood to have bought the adjoining retail blocks for £115m, reflecting a net initial yield of 3.9%.
WeWork has already begun the process of shutting its Long Acre site, along with its operations at Royal London Asset Management’s 131 Finsbury Pavement, EC2, as previously revealed by EG. Members of both were served notice last month, with tenants at Long Acre moved to other locations as landlord negotiations continued.
Renegotiations are ongoing across WeWork’s portfolio. Earlier this month, the company said it has completed lease renegotiations or rejections across 90% of its global portfolio, and that it expects to emerge from Chapter 11 bankruptcy by the end of May. It underlined some $8bn (£6.3bn) of savings in future rent obligations and a reduction in future rent commitments of more than 40%.
At the end of March, reports surfaced that former WeWork chief executive Adam Neumann had made a play for the troubled company with a $500m (£395m) conditional offer to buy back the business.
Photo from WeWork
