Flexible office operator WeWork owes £2.3m in rent to student accommodation investor GCP Student Living at one of its London properties.
GCP said WeWork is in arrears for its ground and first-floor letting at Scape Shoreditch, N1, owing half of its quarterly payments for March and June 2020 as well as the full quarterly payments for September and December.
Those payments, as well as rent due to the end of June 2021, are covered by a part-guarantee by the parent group, WeWork Companies.
WeWork last year said it would look to exit its lease early. GCP said today that discussions are continuing with the company about its “ongoing commitment to the asset”.
A spokesman for WeWork said the company’s goal is to work with landlords to find “mutually beneficial solutions” but declined to comment on specific dealings or the situation with GCP.
GCP updated shareholders on its dealings with WeWork as it revealed that its EPRA net tangible assets per share had edged down by 0.2% year-on-year to 171.38p per share as of the end of December. Its 11-site portfolio valuation had seen a similar drop to £1.03bn. Its booking levels are currently at 68% with an occupancy level of 64%.
The company expects to collect between 55% and 60% of its budgeted total income of £60.1m for the 2020/21 academic year.
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