WeWork grants franchise rights to Ampa Group for expansion in Israel

WeWork, the American commercial real estate developer known for providing flexible workspace solutions, has announced a strategic move in its international operations by granting exclusive franchise rights to the Israeli real estate firm, Ampa Group. This agreement marks a significant milestone in the relationship between the two companies, which dates back to 2014 when WeWork launched its first location in Israel. Ampa Group has been instrumental in the expansion and development of WeWork throughout the region.

As of now, WeWork Israel boasts thirteen locations across six cities, serving over 10,000 members with its innovative and flexible workspace solutions. The franchise agreement is set to cater to the increasing demand from enterprise clients and businesses of all sizes for top-tier, adaptable workspace environments.

Sandeep Mathrani, CEO of WeWork, commented on the partnership’s potential, saying, “As the world begins to emerge from the pandemic and the demand for flexible, turn-key space solutions at scale continues to grow, WeWork’s product is more relevant than ever before. With its proven track record and in-depth understanding of the market, Ampa is the right partner to not only strengthen our business in Israel but also propel it forward.”

The franchise deal is expected to enable the new leadership team to consolidate the company’s operations, improve business fundamentals, and continue on the path to profitability. Shlomi Fogel, Chairman of Ampa Group, expressed enthusiasm about the agreement: “Being WeWork’s local partner for the past seven years, we are excited to start operating WeWork Israel exclusively. We have full confidence in the WeWork product as the global leading solution for flexible spaces. We believe that the Ampa team together with the WeWork local team will strengthen and expand the business in the Israeli market, especially considering the challenges post-COVID-19.”

In a related development, WeWork has also entered into a merger agreement with BowX Acquisition Corp., a special purpose acquisition company (SPAC), which will facilitate WeWork’s transition to a public company with an initial valuation of $9 billion. This merger is supported by significant investment commitments from notable investors such as Starwood Capital Group, Fidelity, Insight Partners, and BlackRock, providing approximately $1.3 billion of cash to fuel WeWork’s future growth initiatives.

The successful completion of this franchise agreement and the merger are contingent upon customary closing conditions and regulatory approvals, with expectations to finalize by the end of the second quarter.

As WeWork continues to adapt and expand, these strategic moves in Israel and the broader global market represent significant steps in the company’s ongoing transformation and commitment to providing leading-edge workspace solutions worldwide.