Yardi has made a commitment to provide DIP and exit financing through its investing arm for WeWork if plan is confirmed
Reinforces support for the co-working sector and WeWork’s future as a successful company
SANTA BARBARA, April 30, 2024 – Yardi Systems, Inc. (“Yardi”, “we” or “us”) today commented on the proposed plan of reorganization for WeWork, Inc. (“WeWork” or the “Company”). Under the proposed plan – which is subject to approval by WeWork creditors – Yardi’s wholly owned subsidiary Cupar Grimmond, LLC (“Cupar Grimmond”) would become a majority shareholder of WeWork following the Company’s successful emergence from the Chapter 11 restructuring process. Existing significant investors and other creditors of WeWork would hold the remainder of the Company’s equity.
Yardi stated:
“As a leading global provider of software and software services for commercial and residential property owners, Yardi is committed to supporting the long-term success of WeWork and the co-working industry. We believe a hybrid workplace is the model of the future, and that we have the experience and innovative technology to help power this transition.
We initially formed a technology partnership with WeWork in 2022 with the launch of the WeWork Workplace app, which enables companies and employees to seamlessly work in traditional leased and owned office buildings, flex and coworking spaces, or their homes. Since then, we have been highly involved in scaling and developing this software and additional WeWork technology services. In 2023, we were approached to assist the Company by providing capital through our investment arm, Cupar Grimmond, as part of WeWork’s restructuring transaction. Following our participation, we have played a supportive role as a senior secured lender during the Chapter 11 process.
Yardi chose to invest in WeWork’s latest fundraise by providing debtor-in-possession (“DIP”) and exit financing because we believe the Company’s fundamental value proposition remains intact and that it can have a successful future. Under the plan, WeWork would emerge from bankruptcy with no debt, adequate working capital and positive free cash flow. We intend to help drive the revitalization of WeWork in a manner that sustainably serves the best interests of its stakeholders – including the Company’s landlords. Importantly, post-bankruptcy WeWork would be operated as a separate entity managed at arms-length from Yardi’s core business.
We look forward to continuing to be a supporter of WeWork throughout the remainder of the bankruptcy process and to communicating further with the Company’s various constituencies at the appropriate time.”
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,200 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.