The world's largest coworking network WeWork will open in Russia without the help of Boris Mintz

The world's largest network of coworking spaces WeWork has completed negotiations to open its first office in Russia. It will appear in the Krasnaya Roza business district in the center of Moscow, which is owned by KR Properties of developer Alexander Klyachin. Initially, O1 Properties of Boris Mints was considered a partner of the network, but after the departure of the businessman from Russia, WeWork will develop independently.

Details

• Founded in 2010 by Israel-born Adam Neumann ($2.5 billion), WeWork now operates a network of 457 offices in 89 cities. WeWork is valued at $25 billion (and could become the second most valuable startup in the US after Uber), and its investors include Goldman Sachs and Softbank, which predicts co-working chains to be worth $100 billion in a few years. You can read more about how Neumann was able to turn coworking into a multi-billion dollar business here , and how this business works here .
• According to RBC sources in the coworking market, WeWork made a strategic decision to develop in Russia, and the loss of a partner did not stop it. In 2019, the chain plans to open five projects in Moscow with a total area of ​​25,000–30,000 sq. m. m within the Garden Ring, says one of the interlocutors of the publication.
• However, another RBC source on the market claims that WeWork has found another partner-co-investor in Russia instead of O1. “The deal with KR Properties took place directly without the involvement of partners,” the third interlocutor of RBC clarifies, not excluding further cooperation between the company and the new partner.

First coworking

• “Negotiations with WeWork have been completed,” Sergey Matyukhin, CEO of KR Properties, confirmed to RBC. According to JLL, a consultant on the deal, WeWork has leased 4,300 sqm. m in the Savin business center - the building used to be occupied by the Otkritie bank. Among the tenants in Krasnaya Roza are Yandex and the Kalashnikov concern.
• The lease term and financial parameters of the deal were not disclosed.

Context

• The plans for WeWork to enter Russia became known in October last year: O1 Properties of billionaire Boris Mints was supposed to become a local partner. The first coworking space was planned to be located in the White Square business center owned by O1 near the Belorussky railway station.
• However, this year, after the collapse of the Otkritie bank, Mints and his three sons left Russia, many of his assets came under the control of the Cypriot Riverstretch Trading & Investments Limited, which is associated with Rosneft on the market.

Artem Gubenko