The US shared workspace provider has announced plans to launch into its first African country with South Africa as its first stop. WeWork plans to launch in South Africa later this year.
The company will team up with Redefine Properties, one of South Africa’s biggest real estate companies and launch in Johannesburg.
“Expanding here is an obvious choice for us: it’s our first location in Africa and, with its global outlook, South Africa is the gateway to the rest of the continent, so we’re excited to welcome new members and grow our community here,” Managing Director Eugen Miropolski said.
In South Africa, WeWork will sign a revenue-sharing lease with Redefine, which means the rent would depend on the revenue it generates from subletting the space, a source familiar with the matter said.
The model is being rolled out to landlords, and is expected to become increasingly common for the company, the source said.
Miropolski also said WeWork had no immediate plans to expand elsewhere on the continent.
“We’re looking to expand our footprint across Africa, and we’re very excited about the potential here, But right now, we’re fully focused on launching in Johannesburg and building our local community,” he said.
Source: Reuters
