HBR Realty Files Eviction Lawsuit Against WeWork in Brazil; Discover the Outstanding Rent

When the lease was signed, WeWork agreed to a monthly rent of nearly R$ 1.3 million (R$ 1,294,279.00).

Data from Market Analytics by SiiLA shows that WeWork occupies 28 properties in São Paulo. If WeWork were to vacate all its leased offices in the city, the vacancy rate for corporate real estate could increase by 1.45 percentage points, from the current rate of 21.94%, based on the second quarter of this year.

HBR Lead Corporate Faria Lima is a Class A+ corporate building with a total leasable area of 10,200 square meters.

The building has 11 floors, of which ten are currently occupied by WeWork. It features 24-hour security, a helipad, sustainability certification, a sprinkler system, central air conditioning, and a backup generator for common areas.

Recently, REsource reported that WeWork had already received an eviction order filed by Stan, the owner of the Comolatti building in the Avenida Paulista area, due to a debt exceeding R$ 4 million.

In addition to HBR and Stam, the real estate investment fund Vinci Offices (VINO11) announced on August 29th that it had filed an eviction lawsuit against WeWork for unpaid rent from June, July, and August of this year. This lawsuit concerns a property on Rua Oscar Freire.

Another investment fund, Rio Bravo Renda Corporativa (RCRB11), also announced on August 21st that it had filed an eviction lawsuit against WeWork for unpaid rent related to the Girassol 555 property in Vila Madalena.

At the time, Rio Bravo’s managing director, Anita Scal, stated that the fund’s priority was to protect its shareholders and that the RCRB11 team would act swiftly and decisively to address any issues that could impact the fund.

According to HBR Realty, the company fully adhered to all terms and procedures outlined in the lease agreement, sending the necessary late payment notices to the tenant.

“Given the failure to resolve the issue within the established deadlines, SPE HBR1 filed the aforementioned Eviction Lawsuit for non-payment on September 2, 2024,” stated the relevant communication issued by HBR and signed by the company’s CFO and Investor Relations Officer, Daniel Viterbo.

In July of this year, REsource reported that at least six real estate investment funds (FIIs) had been affected by WeWork’s default, impacting more than 232,000 investors. Below is a list of property owners already affected by the coworking company’s crisis:

Property Owner/Building

·       HBR: HBR Lead Corporate Faria Lima

·       STAN: Grande Ufficiale Evaristo Comolatti

·       RCRB1: 555 Blocks A, B, and C

·       SARE11: WTorre Morumbi

·       VINO11: OF 585

·       VGRI11: Brazilian Financial Center (BFC)

·       TRNT11: Centro Empresarial Nações Unidas (CENU)

·       VVMR11: One Eleven Building

In a statement sent to Imobi Report, WeWork addressed the reports citing eviction lawsuits and outstanding debts with creditors. Read the statement in full:

“We are unaware of any eviction notices. The company continues to operate fully in all buildings in Brazil. Our temporary actions are intended to accelerate discussions to reach resolutions that are in the best interest of our entire ecosystem, mutually beneficial, and better aligned with current market conditions. Our members remain our top priority. The negotiations are already resulting in agreements with landlords, and we remain committed to providing the excellent service our members expect.”