The We Company announced on Wednesday the launch of ARK, a real estate acquisition and management operation with the goal to own stakes in buildings where it operates coworking space. ARK raised $2.9 billion in capital ahead of the launch.
In an email announcement, a spokesman for We Company said that “over a short period of time, WeWork’s approach to real estate has evolved significantly to where it is today.” Historically, the company signed long-term leases but did not own buildings it operates in.
The We Company claims its value lies not only in its physical spaces but in creating a sense of belonging and community.
ARK is majority owned by The We Company; Ivanhoé Cambridge, a Canadian real estate company, is a strategic investor and has provided “substantial capital.”
The company has raised $6.5 billion to date and has been valued as high as $47 billion, according to CB Insights. Meanwhile, the company is bleeding money. At the end of March, The We Company released select financial results which showed its revenue more than doubled last year to $1.8 billion but its losses hit $1.9 billion.
The company confirmed to CNN Business that ARK will buy Neumann’s real estate property investments for the price he paid for them.