WeWork Cos., the world’s largest shared-workspace startup, has pulled out of talks to lease space in London’s Canary Wharf financial district, according to two people with knowledge of the matter.
The New York-based company won’t proceed with a plan to lease 45,000 square feet (4,180 square meters) at the 7 Westferry Circus building, the people said, asking not to be identified because the matter is private. WeWork has also put on hold less advanced plans to lease space at a building due to be developed at the new phase of Canary Wharf, the people said. It’s the first time WeWork has cancelled a deal in the U.K. capital.
WeWork plans to increase its presence in London, its second-largest market, the company said in an e-mail, without elaborating on its plans for the district.
The U.K.’s vote to leave the European Union wasn’t the main reason WeWork pulled out of the agreement to lease space at the Westferry building at the western edge of the Canary Wharf estate, the people said. WeWork raised about $430 million in March to help finance a push into Asia. That valued the company at $16 billion.
Canary Wharf Group Plc, which owns 7 Westferry Circus and is developing the new phase, declined to comment.