WeWork is to move out of a Shoreditch building managed by student housing company GCP Student, after the two companies agreed to end a lease which was originally set to run until 2030.
The flexible office giant took about 50,000 sq ft of office space at Scape Shoreditch, N1, on a 15-year lease in 2015.
However, it has agreed to pay £3.1m, which covers rent until June, so that it can exit the deal early, GCP said this afternoon.
It comes weeks after GCP told investors that WeWork owed it about £2.3m in rent dating back to March last year, a sum that has now been paid off.
GCP, which manages 11 properties comprising around 4,100 beds, has taken vacant possession of the commercial space.
The student accommodation firm said: “The company today announces that it has terminated the lease with WeWork with immediate effect.
“Ahead of termination, the company has collected a payment of c.£3.1m, including VAT, covering all arrears and rent due to the end of June 2021.
“The payment is equal to the maximum amount available of WeWork’s parent company guarantee.”
WeWork is currently rejigging its UK office portfolio, as the company tries to streamline and move towards profitability.
A WeWork spokesperson said: “Over the last 12 months, WeWork has continued to rationalise its global real estate portfolio as a part of the company’s plan to achieve profitability.
“We have made the decision to move on from 41 Corsham Street and, with several excellent locations in the immediate area, we look forward to continuing to provide our members with unmatched space, service and flexibility.”
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