Flex office working group Cubo acquires WeWork Manchester site
Boutique flex office operator, Cubo, has acquired WeWork’s Manchester site at No.1 Spinningfields, for an undisclosed sum.
WeWork has six sites around the UK and Cubo said it is in active negotiations to acquire more.
Cubo has worked closely with Schroder Real Estate Investment Management to take over three floors at No.1 Spinningfields.
The deal was struck and completed rapidly. It covers more than 1,100 desks over nearly 60,000 sq ft.
Cubo moved into Manchester at the beginning of 2024, initially taking one floor at the nearby Lincoln Building. Due to unprecedented demand, a second floor was taken shortly afterwards, which has resulted in occupancy levels reaching more than 90% in just three months.
The acquisition of No 1 Spinningfields forms part of ambitious plans announced by Cubo founders Marc and Rebecca Brough to almost double its footprint nationally – a growth strategy backed by investment firm Literacy Capital Plc.
No.1 Spinningfields will be Cubo’s 13th site across the UK.
Second workspaces have been launched in Leeds, Nottingham, Birmingham and Derby and a new workspace in Glasgow is set to open later this month.
Other new locations are set to be announced shortly.
Cubo CEO, Marc Brough, said: “We are beyond excited to have been given the opportunity to operate out of what is one of Manchester’s best office buildings.
“I want to reassure all existing occupiers across the three floors of the flex office space that my team will do our absolute utmost to make the transition to Cubo as simple and as hassle-free as possible, as we integrate everyone into the Cubo community.
“The new Cubo will offer an enhanced level of service to what they have come to expect from WeWork and provide access to all our workspaces across the UK.”
Cubo was represented by Walker Morris and Rigby & Co.
New York-based We Work has recently emerged from bankrutpcy as a private company after filing for Chapter 11 bankruptcy protection last November.
It was plagued by early overexpansion which saddled WeWork with mounting debt and unsustainable real estate costs.
WeWork said it has shed more than $4bn in debt, raised $400m of additional equity capital, and cut future lease obligations in half, which it expects to bring some $12bn in future savings.
