WeWork says it is a first for the company outside of London within the UK & Ireland but follows similar deals it has entered in London and other markets across the world.
WeWork, the US-based shared workspace group, has teamed up with Aviva Investors, the global asset management business of insurance giant Aviva plc, on a property deal in an ‘entrepreneurial hub’ city to the north of London.
Aviva, the landlord of 50/60 Station Road in Cambridge which developed the grade A office with local operator Brookgate, has let three floors to WeWork in what is called a ‘lease and revenue’ share agreement allowing Aviva a share in the revenue from WeWork’s income from the asset.
WeWork said it was a first for the company outside of London within the UK & Ireland but followed similar deals it had entered in London and other markets across the world, ‘allowing landlords the opportunity to share in the upside that WeWork generates’.
50/60 Station Road is almost 90% let to a range of national and international occupiers. The building forms the centrepiece of the CB1 estate, a mixed-use regeneration scheme being delivered around Cambridge train station, the city’s central transport hub.
The WeWork offering, set to open in Q3 this year will see over 1,000 ‘members’ use the office space. It is the fourth UK city launch following London, Manchester and Edinburgh.
Patrick Nelson, head of WeWork EMEA, real estate said in a statement, ‘At WeWork, we have the brand value, the global footprint, and the member base to make revenue share locations a success, and so agreements like this make perfect sense.’
Melanie Collett, head of asset management, real estate, at Aviva Investors, added, ‘The increased demand for flexible office space is one of the most exciting changes taking place in the industry and one we are embracing across our office portfolio. We are therefore pleased to enter into this innovative partnership with WeWork, which has built a reputation as the market leader in the provision of shared workspaces.’
WeWork currently has over 45,000 members across the UK, and the membership has doubled year on year, says the company.
