04/10/2024 – 9:38
WeWork closed an agreement with the Rio Bravo Renda Corporativa real estate fund (RCRB11), owned by Rio Bravo, on a property it occupies in the Vila Madalena neighborhood, in São Paulo. The shared office company had defaulted on rent since May in the condominium belonging to Rio Bravo, called Girassol 555.
With the agreement, a desire action against Wework was suspended, informs Rio Bravo’s press office. The website This is Money reached out to WeWork for comment on the deal. As of this writing, there has been no response. The space remains open and will be updated if the company presents its statement.
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The agreement establishes three obligations for WeWork:
- The company will pay late rent within 24 hours, without adding value adjustments or fines;
- Block C of Girassol 555 will be returned furnished by WeWork, in order to facilitate a faster new lease by the Rio Bravo fund;
- WeWork will pay block C early termination fine, paid in three installments over the course of one semester;
The agreement also establishes a 12-month discount on the rent for blocks A and B of Girassol 555, in order to facilitate payments through WeWork.
The agreement involved other co-owners of the building, of which the Rio Bravo fund owns 35%.
WeWork has other eviction actions
The lawsuit filed by Rio Bravo is not the only one WeWork has faced this year. The funds HBR Realty, Grupo Fator and Vinci Offices are authors of other eviction requests in court, also motivated by non-payment of rent.
The company’s financial situation in Brazil has worried investors and tenants and draws attention especially because WeWork’s headquarters, located in New York, has already filed a request for judicial recovery in the United States, approved in May 2024.
Despite the crisis, WeWork remains the leader in the segment of shared offices in Brazil. A survey produced by SiilA, a data platform that brings together information and analysis about the real estate market, shows that the company still has the largest occupied area compared to its competitors.
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