Ivanhoé Cambridge Announces $2.9B Strategic Partnership with The We Company, Will Target San Francisco and Seattle Assets

Black Creek Group, Industrial Property Trust, Prologis, Morgan Stanley & Co., Eastdil Secured, Hogan Lovells, Denver,

(EDITOR’S NOTE: According to communications from both parties, the partnership will look for mixed-use office/retail and office/residential projects. Ivanhoé Cambridge has committed to investing $1 billion into the venture.)

Montreal, Quebec, Canada (May 15, 2019) — Ivanhoé Cambridge and The We Company are pleased to announce the creation of a strategic partnership to acquire and develop real estate properties globally, jointly or in partnership with other investors. 

The strategic partnership will be led by ARK, The We Company’s new real estate acquisition and management platform. ARK’s dedicated professionals will use their strong investment experience and deep relationships with The We Company and Ivanhoé Cambridge to leverage each other’s access to a global real estate pipeline and systematic approach to sourcing, building, filling, and running physical space. 

The ARK team will focus mainly on the acquisition and development or redevelopment of properties and single or mixed-use real estate projects, across multiple asset classes that will benefit from the integration of the suite of services offered by The We Companies. 

The combination of two complementary skillsets represents an innovation in the global real estate market. While Ivanhoé Cambridge is an expert in real estate investment and development, The We Company has become the most advanced company in the world when it comes to creating collaborative environments. 

“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. 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,” stated Sylvain Fortier, Chief Investment and Innovation Officer at Ivanhoé Cambridge. 

Richard Gomel, Senior Partner of ARK, said: “The launch of ARK is a major milestone for The We Company and help drive growth by leveraging The We Company’s extensive real estate experience and network. With its exceptional track record, global experience and reputation, and vast network, Ivanhoe Cambridge is the perfect partner as we begin to build out the business and explore acquisition opportunities around the world.” 

«Only 0.06% of the world’s office space is collaborative and a growing number of businesses desire this type of working space. WeWork is the dominant brand on the global stage and we are convinced of the exceptional growth potential for all stakeholders. », concluded Mr Fortier.

The We Company Launches ARK A New Real Estate Acquisition & Management Platform

  • ARK will initially deploy approximately $2.9 billion of total equity capital
  • Platform will optimize assets and drive innovation across the portfolio through enterprise and “tenant in tow” strategies
  • Ivanhoé Cambridge to be founding strategic partner in ARK’s new venture

New York City (May 15, 2019) –  The We Company is pleased to announce the launch of ARK, its global real estate acquisition and management platform.

An Evolution of The We Company Real Estate Investment Strategy

ARK builds on the strong foundation in real estate acquisition and management represented by WeWork Property Advisors, an investment advisor affiliated with The We Company and Rhône Group, which will combine with ARK as part of the launch.

ARK will focus on acquiring, developing, and managing real estate assets in global gateway cities and high-growth secondary markets.

The We Company will occupy some or all of ARK-owned real estate by deploying WeWork’s growing Enterprise business – now representing over 40% of global memberships – in partnership with a “tenant in tow” strategy.

ARK will leverage its access to The We Company’s site selection process and proprietary technology, as well as its relationships with partners and enterprise member companies, to access a broad range of real estate investment opportunities. 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 We Company’s established capabilities in sourcing, building, filling, and operating properties.

Rich Gomel, Managing Partner, ARK, said: “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.”

Ivanhoé Cambridge – Strategic Partner

ARK is also pleased to announce that Ivanhoé Cambridge, a real estate subsidiary of Caisse de dépôt et placement du Québec and one of the world’s largest and most highly-respected institutional real estate investors, is providing substantial capital and support to the platform. Ivanhoé Cambridge plans 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.

Sylvain Fortier, Chief Investment and Innovation Officer at Ivanhoé Cambridge said: “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. 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.”

Management Team and Partners

ARK will initially deploy $2.9bn in total equity capital following its combination with WeWork Property Advisors. The We Company will be the majority owner of ARK. 

The platform will be chaired by Steven Langman, Managing Director of Rhône Group and a member of The We Company’s Board of Directors. He will serve as Chairman of ARK’s Management Committee and will also serve on ARK’s investment committees. Mr. Langman and Rhône Group will remain a part of the combined ARK platform. 

In addition to Mr. Langman, ARK will be overseen by an experienced and seasoned management team with deep experience in the real estate business, including:

  • Rich Gomel, most recently President of WeWork, leads the ARK platform as Managing Partner, and
  • Wendy Silverstein, most recently Chief Executive Officer of New York Reit and previously holding senior positions with Vornado Realty Trust and Citicorp, among other roles, serves as Chief Investment Officer.

ARK’s leadership is supported by a dedicated group of experienced real estate professionals with diverse expertise across real estate acquisition, development, and management.

West Coast Commercial Real Estate News