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WeWork's rent at 21 Collyer Quay and Funan remains current, CICT says

WeWork's rent at Funan and 21 Collyer Quay is current, says CapitaLand Integrated Commercial Trust's manager

According to the Wall Street Journal, WeWork plans to file for bankruptcy as early as next week, starting Nov 6.

In Singapore, WeWork has a tenancy for 21 Collyer Quay which comprises 213,000 sq ft of NLA with a valuation of $634 million as at December 31, 2022, and at Funan. Both properties are owned by CapitaLand Integrated Commercial Trust C38u.

When asked if the if WeWork’s US travails are likely to impact its tenancy at 21 Collyer Quay, a spokesperson for CICT’s manager says: “WeWork remains a tenant at 21 Collyer Quay and Funan, and it has been paying its rents on schedule. We are currently in discussions with the tenant while closely monitoring the ongoing developments. As with any lease arrangement, should a tenant approach us for discussion, we will assess on a case-by-case basis, considering our contractual rights and obligations. This approach ensures that we can adapt to our tenants' evolving needs and the changing market dynamics effectively.”

Analysts say that in their most recent briefing following the 3QFY2023 business updates by CICT, the manager is still in discussions on the WeWork lease, which runs until 2028. WeWork remains current on its rent, they add, accounting for 2.4% of gross rental income.

CapitaLand Development (formerly CapitaLand) has a stake in The Work Project, a coworking space operator which is a tenant in CICT’s properties, contributing 1.5% to GRI as per the REIT’s 3Q2023 business updates.

In the business updates, CICT’s retention rate in its retail spaces was 82.9% and for office space, the retention rate was 90.4%.

"CapitaLand maintains close relationships with an extensive network of prospects and existing tenants, helping us understand their business space requirements and stay updated on prevailing market trends," the spokesperson says.

 

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