Ampa Group signs franchise agreement for WeWork Israel – Jewish Business News
Ampa Group signs franchise agreement for WeWork Israel
The Ampa Group is now the owner of the WeWork Israel franchise.
The company explained that Ampa has been instrumental in growing WeWork across the region since the company opened its first site in Israel in 2014. Seven years later, We work Israel has expanded to thirteen sites in six cities, providing more than 10,000 members across the country with flexible and innovative space solutions.
Ampa Group is one of the largest holding companies in Israel, active in various fields including real estate, finance, industry, agriculture and energy. The real estate business includes the ownership and management of more than 400,000 square meters of office, commercial and logistics properties, with tenants such as Google, PayPal and VMware.
WeWork continues to expand its business after going through a dire period of scandals and bad investments. Some still think the business is doomed to failure. WeWork said this franchise deal in Israel is another step for the company’s new management team, as it streamlines the business while trying to move forward on the path to profitability. As recently announced in its merger agreement with BowX Acquisition Corp., the company has a fully subscribed $ 800 million PIPE, which includes investors such as Starwood Capital Group, Fidelity, Insight Partners and BlackRock.
If you’ve just seen the Adam Neumann documentary, “WeWork: Or The Making and Breaking of a $ 47 Billion Unicorn,” then you’ll know he’s accused of practically destroying the company he founded. Neumann, born in Israel, was forced to leave WeWork at the end of 2019. After a meteoric rise, the entrepreneur was bowled over by allegations of serious drug use and sexual irregularities. These included stories of drug use and savage sexual activity taking place on board private jets paid for by the company and during company business. Women said they were sexually assaulted during the thefts.
A company’s mission, values, ethics and workspace are all part of its culture.
– WeWork (@WeWork) April 18, 2021
WeWork was therefore forced to delay its IPO and, after collecting the coins, is hoping to try again.
Sandeep Mathrani, CEO of WeWork, said, “As the world begins to emerge from the pandemic and the demand for flexible, turnkey large-scale space solutions continues to grow, WeWork’s product is more relevant than ever. With its proven track record and deep understanding of the market, Ampa is the perfect partner not only to strengthen our business in Israel, but also to propel them forward. “
Shlomi Fogel, President of Ampa Group, said: “As a local partner of WeWork for the past seven years, we are delighted to start operating WeWork Israel exclusively. We have full confidence in the WeWork product as the world’s leading flexible space solution. We believe the Ampa team and the local WeWork team will strengthen and expand the business in the Israeli market, especially given the post-COVID-19 challenges. “
The franchise agreement with Israel is expected to close by the end of the second quarter and is subject to customary closing conditions and regulatory approvals.