WeWork Cos., the company that provides the space, community and
services to help people make a life, not just a living, SoftBank
Group Corp. (“SoftBank”) and Hony Capital, a leading private equity
firm in China, today announced a new $500 million investment
dedicated solely to fueling WeWork’s growth and expanding its
operations throughout China. The investment vehicle, led by Hony
Capital and a subsidiary of SoftBank, created an entity that will
operate under the name WeWork China. WeWork will be responsible for
the management and operations of WeWork China, while SoftBank and
Hony Capital will each own a minority stake. With the support of
local teams and its partners, WeWork will continue looking for new
space in cities with existing mature businesses, while also
exploring new regions with potential for innovation and growth.
The investment will enable WeWork China to expand its operations
into new cities next year and increase its current footprint in
Beijing, Hong Kong and Shanghai on an accelerated timeframe. In the
immediate term, WeWork China will continue building its local team
and attracting new talent to join in its mission and help
facilitate this unprecedented expansion.
“We are extremely pleased to deepen our partnerships with Hony
Capital and SoftBank to bring WeWork to more locations and cities
across China at an even faster pace,” said Adam Neumann, Chief
Executive Officer of WeWork Cos. “Since coming to China only a year
ago, we’ve been able to establish a vibrant community of creators
and companies - and we’ve only just begun. With Hony Capital and
SoftBank’s financial support and deep expertise in the region,
we’ll substantially grow our membership base in China and make
WeWork the preeminent workspace solution and community in greater
China.”
Neumann added, “With this investment and singular focus on
WeWork China, we will support the growth of our members in China by
creating an even stronger network across this important market. We
believe that by also increasing our presence in China, we will help
to attract more foreign investment and companies into China. China
has become an incredible hub for business, finance, and innovation,
and through this investment, we will expand beyond Beijing, Hong
Kong and Shanghai. We believe WeWork can unlock numerous
opportunities for businesses all over China and we will help more
people create a life, not just a living.”
Ronald D. Fisher, Director, Vice Chairman of SoftBank, said, “At
SoftBank, we are constantly looking to invest in disruptive
technologies that will prepare us for the next stage of the
Information Revolution. WeWork is leveraging the latest
technologies in its transformative and innovative approach to work
styles, which fits squarely with that vision. We are excited to
continue to support WeWork on its growth and expansion throughout
Asia.”
John Zhao, the Chairman and Chief Executive Officer of Hony
Capital, said, “This is our second round of investment in WeWork,
based on our solid confidence in WeWork’s business model and
development strategy. With our capital and other resources, we hope
we can help accelerate WeWork’s localization and expansion in
China. Since its entry into China last year, WeWork has
demonstrated its unique business model and clear competitive
advantages, which highlight not only the shared office space model
itself, but also its global network that offers interaction between
members, services and various other resources. In addition to
serving entrepreneurs and startups, WeWork has also created a brand
new working style that has since attracted many world-renowned
enterprises such as Microsoft, GE and Dell, as well as local
companies including HSBC and OFO. We believe that with the
unrivaled scale, global network and the vibrant community culture,
WeWork will keep leading the shared-office industry in the
future.”
Zhao added, “We believe with Hony Capital and SoftBank’s
investments, WeWork will introduce its unique business model to
more locations across China at an even faster pace. The innovative
ecosystem it has created will continue benefiting the growth of
Chinese companies, while helping to bring in foreign investments
throughout the country, therefore providing better products,
technology and services to Chinese consumers.”
To oversee this expansion and lead the Asia region, Christian
Lee will become the Managing Director of WeWork Asia and will be
based in Shanghai at the Company’s regional headquarters. Lee will
manage all aspects of WeWork China’s operations, build and scale
the local team, pursue partnership and growth opportunities, and
ensure the continuity of WeWork’s signature culture, product and
community. Lee, who has served in various senior leadership roles,
joined WeWork in 2015. Lee has been instrumental in scaling and
growing WeWork around the world as he helped to raise capital,
structured various partnerships agreements and developed WeWork’s
regional infrastructure operations.
In greater China, WeWork currently operates eight locations. By
the end of 2017, it is expected to have about 15,000 members in
China. WeWork’s ability to help its member companies can be seen
all over the world, especially in China. WeWork responds to its
members’ evolving needs for flexible space and has created an
inspiring community that can support its members’ growth.
WeWork is a global company with a local playbook. It provides an
entirely new way to work by offering flexible space, services, and
a connected community network to creators, entrepreneurs, small and
medium businesses, and multinational companies. WeWork's “space as
a service” solution enables companies of all sizes to enter and
exit markets opportunistically, grow and shrink office footprints
according to their needs, and pursue new business lines and ideas
in a way that best suits their particular needs. Today, more than
10% of Fortune 500 companies are members with WeWork. This
enterprise company segment represents the fastest growing member
demographic for WeWork and it now accounts for more than 20% of
WeWork's total membership.
WeWork is also creating a digital operating system for physical
space that leverages data and technology at each point in the
building process so it can make better sourcing decisions, improve
its designs, build faster and smarter, and ultimately improve the
lives of the people working within its buildings. Its cutting-edge
technologies and dedication to technological innovation is one of
the key reasons why WeWork has been able to scale from operating
one workspace location to more than 150 in just over seven years.
This technology will continue to be a differentiating factor as it
accelerates growth in China. WeWork expects to gain greater
efficiencies in its building and operations as its presence and
notoriety in China increases.
About WeWork
WeWork is a platform for creators, providing more than 130,000
members around the world with space, community, and services
through both physical and virtual offerings. WeWork’s mission is to
help create a world where people work to make a life, not just a
living. WeWork currently has more than 155 physical locations in 50
cities and 15 countries around the world. WeWork, started in New
York City in 2010, was founded by Adam Neumann and Miguel
McKelvey.
About the SoftBank Group
SoftBank is a global technology player that aspires to drive the
Information Revolution. SoftBank is comprised of the holding
company SoftBank Group Corp. (TYO: 9984), its domestic
telecommunications subsidiary SoftBank Corp., and its global
portfolio of companies, which includes advanced telecommunications,
internet services, AI, smart robotics, IoT and clean energy
technology providers. In September 2016, ARM Holdings plc, the
world's leading semiconductor IP company, joined the SoftBank
group. To learn more, please visit www.SoftBank.jp/en/
About Hony Capital
In March 2016, Hony Capital led the F round of investment in
WeWork and introduced Chinese investors including Legend Holdings,
Jin Jiang, Greenland and China Oceanwide. This is the second major
cooperation between Hony Capital and WeWork, and Hony Capital will
continue helping WeWork to bring in Chinese investors with various
resources.
Hony Capital, founded in 2003 and sponsored by Legend Holdings,
specializes in buyout investment and currently it has USD 10
billion assets under management. The investors of Hony Capital
include Legend Holdings, Jinjiang, Oceanwide, Greenland and leading
investment institutions such as Goldman Sachs, Temasek, European
and U.S. pension funds and endowment funds. Hony Capital has
invested in over 100 companies in the areas of pharmaceutical and
healthcare, media and entertainment, consumer products, food and
beverage, as well as machinery and equipment. Hony Capital’s
portfolio companies include China Shijiazhuang Pharmaceutical Group
(CSPC), Zoomlion, China International Marine Containers (CIMC),
Suning, Shanghai Chengtou Hoding, Jin Jiang International Hotels,
ENN, PizzaExpress (UK), STX(US), WeWork (US), etc. The assets value
of these companies totals about RMB 2.9 trillion with sales volume
of RMB 860 billion, providing more than 450,000 jobs.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170726006520/en/
WeWorkDominic McMullan / Rebecca
McClainpress@wework.comorHony CapitalCathy
Wangmedia@honycapital.comorSoftBankJapan:SoftBank
GroupSoftBank Group Corp. Corporate Communications+81 3 6889
2300sbpr@softbank.co.jporUS:Sard Verbinnen & CoBenjamin
Spicehandler / Hannah Dunning+1
212-687-8080SoftBank-SVC@sardverb.com