US shared office space company WeWork is reportedly in exclusive negotiations to acquire a 12-building campus in the City of London financial district from Blackstone Group.
According to news reports, the New York business has agreed to pay over £600 mln (€680 mln) for the 620,000 sq ft (57,600 m2) Devonshire Square complex near Liverpool Street station.
The 2-hectare estate, which includes offices, stores, restaurants and a private members club, was developed by the East India Company from 1768 to 1820, and used to store silk, tea, cigars and oriental carpets.
Devonshire Square was bought by Blackstone in May 2012 from rival Rockpoint and the Abu Dhabi Investment Authority (ADIA) for just under £340 mln (€423 mln), about 17% below the £410 mln paid by Rockpoint and ADIA for the site in late 2006.
WeWork has appointed Eastdil Secured to source credit to finance the deal, which would be WeWork’s second major property purchase after the acquisition last week of the flagship Lord & Taylor building in Manhattan for $850 mln (€645 mln).
WeWork is buying the Fifth Avenue property in partnership with Rhone Capital from troubled Canadian retailer group Hudson's Bay.
