Former Hudson's Bay building to get $438m WeWork makeover

by Steve Randall on 18 Nov 2019

A building which was sold to co-working behemoth WeWork by Hudson’s Bay Co. is to get a major makeover.

The Lord & Taylor building in New York will have around $438 million spent on renovations according to a stock market filing from Hudson’s Bay.

Bloomberg reports that the building will have two floors of retail plus a basement food hall and nine floors of offices.

The Canadian retailer sold the building to WeWork in February but retains a $125 million stake in the 115-year-old building at 424 Fifth Avenue.

The co-working space that WeWork will be hoping to fill totals 680,000 square feet but the New York Post recently said the firm was finding it hard to secure tenants, referring it to an “albatross”.

WeWork is under pressure having scrapped plans for an IPO and receiving a financial lifeline from SoftBank; the firm reported a net loss of $1.25 billion in the third quarter of 2019.

Hudson’s Bay says in its filing that WeWork’s investment in the building includes $600 million of outstanding debt when acquired, expected to rise to $900 million post-renovation.

WeWork has not commented on the Bloomberg story.

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