Connect with us

International

The We Company Launches New Real Estate Investment Platform Ark

Published

on

The We Company Launches New Real Estate Investment Platform Ark

The We Company starts 2.9 billion dollar company named Ark which will invest in commercial real estate

Flexible coworking space provider WeWork’s parent company The We Company launched Ark on May 15. Ark is a real-estate investment platform and will purchase and develop commercial properties.

Ark has already garnered an investment of $2.9 billion. Out of that, $1 billion has been invested by Ivanhoé Cambridge, a unit of Canada-based investor, CDPQ.

So far, the New York-based giant solely rented office spaces and then put them out on lease. This move to actually own property is seen by experts as a departure from the company’s original process.

WeWork was valued at approximate 47 billion dollars in a private fundraising round in January. As of now, it is all set to achieve the largest IPO (initial public offering) after ride-hailing firm Uber in 2019. In April, it confidentially submitted a draft registration statement for its IPO with the U.S. Securities and Exchange Commission.

However, the company is undergoing quite a few losses. Experts see them in a similar light as that of Lyft Inc and Uber. Investors are worried whether WeWork will be able to grow in an uncertain economy or not.

In the fiscal year of 2018, WeWork had officially reported losses worth 1.93 billion dollars. However, it ended up earning 1.82 billion dollars in revenue. Investors believe that a weak economy could reduce the company’s client base and leave it in a mess.

Meanwhile, The We Company said that it experienced losses narrowed slightly in the first quarter from a year earlier to 264 million dollars as revenue. The revenue is estimated to double annually as its customer base is on the rise.

On the other hand, WeWork’s critics have also stated that there is a huge risk attached in the earnings of the company from its tenants’ short-term contracts to cover its own leases with property owners that can run 10 years or more.

 

Source: Money Control

ALSO READ: Coworking Firm Spaces Collaborates With Adani Realty

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

© 2019 RealtyNXT | All Rights Reserved