The We Company recently announced it launched a global real estate acquisition and management platform called ARK. ARK is going to build on the company’s foundation in real estate acquisition and management represented by WeWork Property Advisors — which is an investment advisor affiliated with The We Company and Rhône Group and will combine with ARK as it launches.
ARK is going to focus on acquiring, developing, and manage real estate assets in global gateway cities and secondary markets that will benefit from WeWork’s occupancy.
WeWork is going to deploy its space-as-a-service model in Ark owned or operated properties for member companies including its growing enterprise business now representing 40% of global memberships in conjunction with its anchor tenant strategy.
ARK is going to leverage its access to The We Company’s site selection process and proprietary technology along with its relationships with partners and enterprise member companies to access a broad range of real estate opportunities.
And ARK intends to immediately stabilize assets by executing a proven pre-packaged business plan and will apply The We Company’s holistic solutions for real estate owners based on the company’s established capabilities in sourcing, building, filling, and operating properties.
“We have seen first hand the value that the WeWork ecosystem can create for landlords and real estate partners. The launch of ARK will help drive growth by leveraging The We Company’s extensive real estate experience and network. ARK has been set up to capitalize on that opportunity and allow us to provide different partnership options for the real estate community to participate in the growth and expansion of the We Company,” said ARK Managing Partner Richard Gomel.
ARK also announced that Ivanhoé Cambridge (a real estate subsidiary of Caisse de dépôt et placement du Québec) is providing substantial capital and support to the platform. And it is planning to collaborate with ARK on its real estate acquisition and management of properties around the world allowing the platform to benefit from Ivanhoé Cambridge’s significant experience and expertise in the real estate sector.
“Like The We Company, we believe there is enormous upside in disrupting traditional norms of real estate. We share the same vision, commitment to social responsibility, and long-term approach towards real estate making this a natural partnership and one that we are confident will be transformational for both companies,” explained Ivanhoé Cambridge Chief Investment and Innovation Officer Sylvain Fortier. “The We Company brings its creative and innovative talent, along with its technological and design expertise, which are essential to meeting the new expectations of real estate spaces whether it is in the commercial or residential sphere. ARK brings a strong team of acquisition and asset management professionals and deep relationships with The We Company. I think we will complement each other beautifully.”
ARK is going to initially deploy $2.9 billion in total equity capital following the combination with WeWork Property Advisors. And The We Company will be the majority owner of ARK. The ARK platform will be chaired by Rhône Group managing director Steven Langman and member of The We Company’s board. Langman is going to serve as Chairman of ARK’s Management Committee and also serve on ARK’s investment committees. Plus Wendy Silverstein —formerly of New York Reit and Vornado Realty Trust — is going to serve as ARK’s Chief Investment Officer.
The We Company was launched by Adam Neumann, Rebekah Neumann, and Miguel McKelvey in 2010. The We Company has three distinct business lines including WeWork, WeLive, and WeGrow. WeWork is a temporary office space resource. WeLive offers flexible rentals for furnished apartments. And WeGrow is WeWork’s conscious entrepreneurial school.