atans1

HOHOHO: Temasek invested in WeWorks’ flea ridden dog

In China, Media, Temasek on 26/10/2019 at 4:10 am

In July 2018, the FT reported that SoftBank, its Saudi-backed Vision Fund, private equity firms Trustbridge Partners and Hony Capital, and our very own Temasek invested in a WeWork subsidiary in China. It was valued at US$5bn.

A year before, after Softbank and Hony put $ into it, it was worth US$1bn.

Great investment that naturally TOC’s M’sian Indian goons never reported. To be fair neither did other alt media publications. I think our constructive, nation-building trumpeted this investment.

Now?

China has emerged as one of WeWork’s worst performing markets as a local operation once seen as critical to the office provider’s global growth suffers from ultra-low occupancy rates and is “bleeding cash”, said people with direct knowledge of the business.

FT

What “ultra-low occupancy rates” mean. FT reported: WeWork locations in October in

Shanghai had a vacancy rate of 35.7% in October,

Shenzhen 65.3% (in Hong Kong only 22.1%  vacant) and

Xi’an, had a vacancy rate of 78.5%.

As reported in ST’s BS about WeWorks Cont’d, WeWorks is exiting China.

Wonder if our constructive, nation-building media will report this fiasco? It trumpeted its success last year.

  1. Our MSM reported on Ucommune, We’s competitor in China, applying for IPO.

    https://www.businesstimes.com.sg/garage/chinas-wework-equivalent-ucommune-files-for-us-ipo-sources

    Although it’s basically a copy & paste from Reuters & FT.

    We’s valuation has sunk from $47B to $8B. Realistically it should be way below $5B. It’s lease liabilities has not shrunk though & still stands at about $50B. It still hasn’t figured out a way to earn profits. As it grew bigger & grew revenue over the years, it also grew losses …. i.e. it’s business model is basically unscalable.

    We’s “space as a service” is not new & old timers in commercial property have mentioned similar US businesses in the 80s & 90s attempting it with bad outcomes.

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