New York-based The We Company, which runs shared office provider WeWork, on Wednesday said it has formed a $2.9 billion investment platform with global real estate investment firm Ivanhoé Cambridge to acquire and develop properties globally either jointly or in partnership with other investors.
The strategic partnership will be led by ARK, The We Company’s new real estate acquisition and management platform, said a statement issued by both the companies. The new platform will initially deploy $2.9 billion total equity capital, it added.
Founded by Adam Neumann and Miguel McKelvey in 2010, The We Company is present across 100 cities across 27 countries. Apart WeWork, the New York-based also has other verticals–WeLive and We Grow. In India, WeWork is present over 21 locations across three cities including Mumbai and Gurugram.
The new platform would focus mainly on the acquisition and development or redevelopment of properties and single or mixed-use real estate projects, across multiple asset classes.
“We believe there is enormous upside in disrupting traditional norms of real estate. We share the same vision, commitment to social responsibility, and long-term approach towards real estate making this a natural partnership and one that we are confident will be transformational for both companies," said Sylvain Fortier, chief investment and innovation officer, Ivanhoé Cambridge in the statement.
He further added that only 0.06% of the world’s office space is collaborative and a growing number of businesses desire this type of working space. “WeWork is the dominant brand on the global stage and we are convinced of the exceptional growth potential for all stakeholders," Fortier said.
A subsidiary of the Caisse de dépôt et placement du Québec, one of Canada's leading institutional fund managers, Ivanhoé Cambridge Cambridge held close to C$65 billion in real estate assets as of 31 December, 2018.