WeWork Up-to-date With Office Rental Payments For 21 Collyer Quay, Funan
SINGAPORE – A spokesperson for CapitaLand Integrated Commercial Trust (CICT) revealed that WeWork is currently on time with its office rental payments for Funan and 21 Collyer Quay, reported The Edge on Wednesday evening (1 November, SGT).
“WeWork remains a tenant at 21 Collyer Quay and Funan, and it has been paying its rents on schedule,” said the CICT representative when asked if the latest breaking news would affect the company’s lease at the said commercial properties.
Notably, sources told The Wall Street Journal that the coworking space operator intends to file for bankruptcy as early as next week from 6 November 2023.
“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,” explained the CICT spokesperson.
Following the release of CapitaLand Integrated Commercial Trust’s business update for the third quarter, market watchers shared in their most recent briefing that CICT’s manager is still in talks with WeWork regarding its office lease, which will run until 2028. The analysts added that the coworking space operator remains current on its rent, making up 2.4 percent of CICT’s gross rental income.
In its latest business update, CICT’s manager disclosed that the trust enjoys a high retention rate of 90.4 percent for its office properties and a lower retention rate of 82.9 percent for its retail premises.
Meanwhile, in the event that WeWork ceases or downsizes its operations in the commercial developments owned by CapitaLand Integrated Commercial Trust, there are other coworking space operators that could fill in the vacated office space.
These include The Work Project, which already operates in some of CICT’s buildings and contributes 1.5 percent of gross rental income of the trust as per the landlord’s latest business update. CapitaLand Development, previously known as CapitaLand, also owns a stake in that coworking space operator.
“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,” added the CICT representative.