WeWork has scrapped a deal with Boultbee Brooks Real Estate to take up the entire 50,000 sq ft Hyphen building in Manchester.
The flexible office space giant leased all 13 floors in the building, on Mosley Street, in April last year.
However, the company has walked away from the deal as part of its ongoing global review to cut its real estate portfolio.
A spokesperson for WeWork confirmed to EG: “We have mutually agreed with Boultbee Brooks Real Estate to not proceed with the planned WeWork location at the Hyphen building.
“Manchester is a great city for us and we remain committed to providing our current and prospective members with flexible workspace solutions and an exceptional experience across our four locations.”
WeWork is now based in four locations across Manchester: 1 St Peter’s Square, The Hanover Building, Dalton Place, and No1 Spinningfields.
Since last autumn, WeWork has been looking to see how it can make its office portfolio the right size in a bid to become more profitable. This will include exiting some leases, the company said. Knight Frank has been instructed to review WeWork’s footprint.
The flex office space provider is fighting to turn its losses around, after making a ¥720.8bn (£5.6bn) loss for its major backer, SoftBank, over the year to 31 March. SoftBank invested a total of $10.3bn (£8.5bn) into WeWork over the course of the year.
Boultbee Brooks Real Estate has been approached for comment.
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