Coworking group WeWork and the European Medicines Agency, the European Union's drugs regulator, are in talks to renegotiate a massive lease agreement at 30 Churchill Place in Canary Wharf, London.
The EMA sublet the space to WeWork in 2019 after it left London for Amsterdam in response to the UK's Brexit vote to quit the EU, with its lease still running to June 2039. EMA sublet all of its 284,704 square feet of accommodation to WeWork until the end of the lease, as reported.
The Daily Telegraph and Financial Times have reported that WeWork may leave the property, leaving the EMA liable for a €450 million bill to cover the rent to the end of the lease. The papers have cited EMA's written replies to questions by the European parliament’s budget committee.
WeWork is in the midst of a global drive to renegotiate its leases after warning last August "substantial doubt exists" about its ability to continue as a going concern.
“We are up to date on our lease obligations at 30 Churchill Place, which remains open and operational, providing our members with the signature experience they expect,” said a WeWork spokesperson in response. “As part of our previously-announced process, we continue to work constructively and collaboratively with our landlord partner at this flagship location to craft a solution that mutually benefits both parties for the long term.”
EMA moved to Amsterdam, where it faces the arrival of an erotic centre as its neighbour. The agency was one of the most vocal opponents of the move, having written to the authorities to say that safety for its employees had been a major criterion for choosing Amsterdam as its new home after leaving the UK in the wake of Brexit. A spokesperson for the mayor of Amsterdam dismissed the concerns saying there would be at least 500 metres between EMA and the potential location. Following a consultation period, during which three locations were considered, the City of Amsterdam recently settled on the site near the Europaboulevard. However, the proposal still needs to be approved by the city council.