Report: WeWork cofounder Adam Neumann might must unload property to repay a large mortgage

Adam Neumann could also be out of the day by day stream of WeWork, however he seemingly stays high of thoughts to a number of the firm’s bankers.

In keeping with a new Enterprise Insider piece, Neumann is working with JPMorgan, UBS, and Credit score Suisse to think about new phrases for a $500 mortgage that he took out earlier than WeWork filed to go public, and from which Neumann has already drawn down $380 million. Since he can now not pay the mortgage with proceeds from promoting WeWork shares publicly (it yanked its S-1 earlier this week), he might must put up a few of his properties or different property as collateral for the mortgage, in line with considered one of BI’s sources.

“No phrases have been set,” a spokeswoman for Neumann tells the outlet.

Per earlier stories, Neumann has lots to dump if it involves it, having acquired quite a few residential and business properties over time.

Amongst his reported investments is a $10.5 million Greenwich Village townhouse; a farm in Westchester, New York; a house within the Hamptons the place he reportedly weathered the storm along with his household forward of resigning as CEO final week; and a $21 million, 13,000-square-foot home within the Bay Space with a guitar-shaped room.

In keeping with an earlier WSJ report, Neumann has additionally purchased a number of properties by means of investor teams that he had leased again, in some circumstances, to WeWork.

WeWork, and Neumann, have each loved a detailed relationship with JPMorgan lately. As lately reported within the NYTimes,  JPMorgan “lent Mr. Neumann cash personally (along with his inflated shares as collateral), supplied fairness and debt for the corporate, served as a company adviser for the I.P.O. and secured practically $6 billion in financing as a part of the now scotched providing.”


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