WeWork has agreed a 20-year lease with Malaysian sovereign wealth fund Permodalan Nasional Berhad to take all the office space at Aviation House, WC2.
The flexible co-working provider will occupy 130,000 sq ft across eight floors of the building near Holborn Underground station, which it will revamp.
The building’s office space was previously occupied by various government departments, including the Food Standards Agency, Ofsted and the Medical Research Council, while the retail space at ground level is let to Sainsbury’s and Boots.
WeWork, which already has 24 locations across London with 26,000 members, is expanding rapidly across the capital.
Earlier this month, Matthew Brown, WeWork senior director – real estate, European expansion, confirmed the company was in a period of “hyper-growth”.
PNB, which also has a stake in the ongoing regeneration of Battersea Power Station, acquired the building in 2014 from a private Chilean investor for £155m at a yield of 5.25%.
PNB president and group chief executive Dato’ Abdul Rahman Ahmad said: “We are pleased to have inked this long-term lease with WeWork as it provides the opportunity to transform the building and enhance the value of the property.
“Aviation House was built in 1991 and it has been almost 20 years since its last revamp.
“We look forward to seeing the improvements and vibrancy that WeWork will bring to the building and to explore other opportunities to collaborate with WeWork in the future.”
WeWork senior vice president real estate Patrick Nelson added: “Our 24 open locations in the city have already proved incredibly popular, and we are thrilled to be expanding here with the historic Aviation House.
“Located in Holborn, the building is well-connected by transport and has spectacular architectural elements, such as its old church entrance.
“These aspects, as well as easy accessibility to local shops, restaurants and other local amenities, will be beneficial for our members and will provide them with opportunities to collaborate with a like-minded community of entrepreneurs and businesses.”
To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
