WeWork Venture Is Said to Pay 520 Million Pounds for London Offices

WeWork and two other companies paid about 580 million pounds for an office complex in the City of London district, according to Bloomberg, citing two people with knowledge of the deal.

WeWork has begun purchasing buildings as it seeks to diversify its global portfolio of short-term co-working spaces, which are mainly leased from landlords on long-term rental agreements. The company will own 10 percent of Devonshire Square Estate, while TH Real Estate and Denmark’s PFA Ejendomme will hold 45 percent each, one of the people said.

The U.S. business announced that the deal had been completed, without giving the purchase price. A spokeswoman for the venture declined to comment on the price or share of ownership. Blackstone Group, which sold the complex, declined to comment.

WeWork, which is backed by Softbank, entered negotiations to buy the complex last year, Bloomberg News reported in October. The company later brought PFA and TH Real Estate, a unit of Nuveen Asset Management, into the deal, the person said.

“The opportunity we have in Devonshire Square underlines the WeWork effect,“ WeWork senior executive Rich Gomel said in an emailed statement. “By fully activating the estate, we will unlock tremendous potential and maximize value.