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Several landlords exposed to WeWork via US$47.2B of rental commitments

Several landlords are exposed to coworking giant WeWork through US$47.2 billion of rental commitments, London's Financial Times reported, citing real estate data firm CoStar.

The company sets up special-purpose vehicles for its leases, which typically last 15 years, meaning landlords do not have direct recourse to the parent company should it fail to pay rent, according to the report.

About US$4.5 billion and US$1.1 billion of its rental commitments are backed by corporate and bank guarantees, respectively, the report noted, citing the company's pre-IPO filing.

WeWork has more than 50 landlords in the U.K. and more than 220 landlords in the U.S., the biggest of which include TIAA-CREF, Boston Properties, Beacon Capital Partners and Moinian Group, according to the report, citing CoStar's data.