Report: WeWork cofounder Adam Neumann might must unload property to repay an enormous mortgage

Report: WeWork cofounder Adam Neumann might must unload property to repay an enormous mortgage

Adam Neumann could also be out of the day by day circulate of WeWork, however he seemingly stays high of thoughts to a few of the firm’s bankers.

Based on a new Enterprise Insider piece, Neumann is working with JPMorgan, UBS and Credit score Suisse to contemplate new phrases for a $500 million mortgage that he took out earlier than WeWork filed to go public, and from which Neumann has already drawn down $380 million. As a result of he can not pay the mortgage with proceeds from promoting WeWork shares publicly (it yanked its S-1 submitting earlier this week), he might must put up a few of his properties or different belongings as collateral for the mortgage, in response to one in all BI’s sources.

“No phrases have been set,” a spokeswoman for Neumann tells the outlet.

Per earlier stories, Neumann has lots to dump if it involves it, having acquired quite a few residential and industrial properties through the years.

Amongst his reported investments is a $10.5 million Greenwich Village townhouse; a farm in Westchester, New York; a house within the Hamptons, the place he reportedly weathered the storm along with his household forward of resigning as CEO final week; and a $21 million, 13,000-square-foot home within the Bay Space with a guitar-shaped room.

Based on an earlier WSJ report, Neumann additionally purchased a number of industrial properties by investor teams that he leased again, in some circumstances, to WeWork.

WeWork and Neumann have each loved an in depth relationship with JPMorgan in recent times. As just lately reported in The New York Occasions, JPMorgan “lent Mr. Neumann cash personally (along with his inflated shares as collateral), supplied fairness and debt for the corporate, served as a company adviser for the I.P.O. and secured practically $6 billion in financing as a part of the now scotched providing.”

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