New York City-based co-working firm WeWork is entering the African market with new offices in Johannesburg that are set to launch later this year.
The fast-growing company, valued at $47 billion, opened in its 100th city in December 2018, according to Businesstech.
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WeWork launched offices in 65 cities across 20 countries in 2017. By the end of January 2019, it had a total of 425 offices in 100 cities across 32 countries.
The WeWork South Africa office will be in Rosebank, a trendy part of Johannesburg that has become a popular commercial real estate destination for new companies entering South African and African markets.
The office is set to launch in the second half of 2019. There are no immediate plans for the company to expand into other parts of Africa, IOL reports.
WeWork will face competition in the city. Regus provides office and co-working spaces for freelancers and businesses in Sandton’s famed Nelson Mandela Square.
Another competitor that is even closer to home is Perch Offices, also based in Rosebank, offering a co-working environment and business coaching workshops starting at around $18 dollars per day, per their website.
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Pricing has not yet been announced at the WeWork location in Johannesburg.
Six floors of the newly refurbished
WeWork’s first office in Africa will be strategically located close to the Rosebank Gautrain station, the province’s high-speed commuter rail system. Around 2,000 people are expected to work from the location, according to eProp.
Redefine Properties, one of South Africa’s biggest real estate companies, is the owner of the building and will lease the six stories to WeWork.
In an unprecedented deal for WeWork, the co-working space giant will sign a revenue-sharing lease with Redefine Properties, and rent will depend on the revenue it generates from subletting the space, according to Moneyweb.
South Africans who choose to make use of WeWork’s new space in Rosebank will benefit from amenities such as free coffee, craft beer, fruit-infused water and mouthwash in the bathrooms, according to Businessinsider.
The company has been successful in numerous market. A big investment from Japanese multinational conglomerate Softbank put WeWork into the spotlight. Softbank invested $8 billion in WeWork over the last few years, with another $2 billion to be invested imminently, according to Techcrunch.