A High Court judge has sided with the co-working organisation in the first stage of the legal dispute regarding its flagship location in London.
Last January property developer Almacantar announced they would be taking WeWork to court over allegations the organisation has breached its lease.
The property developer argued that the lease should be axed because its guarantor, a US special-purchase vehicle, went bankrupt when WeWork filed for Chapter 11 bankruptcy in 2023.
However, yesterday, Wednesday 8th January, a verdict was reached on one of two lease forfeiture claims – the High Court Judge dismissed claims from SBP 2 S.A.R.L. – a company in Luxembourg and part of the Almacantar group – against 2 Southbank Tenants Ltd – a special-purpose vehicle controlled by WeWork.
Following the decision, WeWork said they ‘expected’ the judge to rule in their favour and remains confident they will claim further victory in the second forfeiture case brought by the land, which is still ongoing.
Speaking to Property Week, a spokesperson from WeWork said: ‘As we expected, the court has thrown out the entirety of the claim against us.
‘We will continue to vigorously defend ourselves in court, and fully expect to continue to prevail. It remains business as usual for our members at this flagship WeWork location in the capital and we look forward to continuing to deliver our signature WeWork experience.’
Currently, WeWork is situated at Two Southbank Place on York Road in London which is comprised of a 300,000 sq ft 17-foot building. Court documents detailed the organisation have been based here since 2019 – when their lease began – and stipulates an annual rental bill of £20m.
Against this backdrop, the documents also outline that the office was fitted out by WeWork for more than £50m to which Almacantar contributed over £36m.
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