- WeWork announced on Saturday that Sandeep Mathrani would be its new CEO.
- Adam Neumann, WeWork’s cofounder, was reportedly ousted from the chief executive role in 2019 after SoftBank took control of the company, and Artie Minson and Sebastian Gunningham have served as co-CEOs since.
- Mathrani was previously an executive at Brookfield properties, and has a history of turning around businesses dealing with debt.
- Some are speculating that hiring an experienced real estate executive hints that WeWork will embrace its role as a real estate company.
- Visit Business Insider’s homepage for more stories.
In the newest update to the WeWork saga, the company has announced a new CEO, Sandeep Mathrani, who will assume the role on February 18. Mathrani is a real estate veteran and will report to the company’s executive chairman, Marcelo Claure.
Mathrani is tasked with building the executive team while dealing with the decisions made under cofounder Adam Neumann. WeWork will continue opening new locations, but at a slower pace, and is also considering dropping other deals that are projected to be unprofitable, The Wall Street Journal reported.
Hiring Mathrani, an experienced real estate executive, might suggest that WeWork is shifting to focus primarily on its real estate identity. WeWork had diversified into housing, WeLive; education, WeGrow; and a luxury gym, Rise by We. After a failed IPO and the departure of Neumann last year, SoftBank took majority control of the company. and Claure, who is SoftBank Group’s CEO, also became WeWork’s executive chairman.
Here’s everything we know about Sandeep Mathrani, the 57-year-old real estate executive most recently CEO at Brookfield Properties.
Sandeep Mathrani is an Indian American real estate mogul. He was born into a wealthy family in India, Bloomberg reported.
He briefly attended the prestigious boys’ boarding school Eton in Berkshire, England.
He soon transferred to a public high school in Philadelphia, when he was 16 years old.
He attended Stevens Institute of Technology in Hoboken, New Jersey, where he earned a Bachelor of engineering, Master of engineering, and Master of management science.
Mathrani’s first venture into real estate was in 1986, after he graduated with his master’s degrees. He said that he bought an apartment in Washington, DC, for $US55,000 and sold it about a year later for $US75,000, making $US20,000 in the process.
Mathrani is mostly quiet about his personal life, but he is married to Ayesha Bulchandani-Mathrani, a board member at the Frick Collection.
In 1994, he started at Forest City Ratner, a New York real estate development company.
There, Mathrani worked under Bruce Ratner, a former owner of the Brooklyn Nets. Ratner became a mentor to Mathrani, and credited him with building the company’s retail business at a dinner in Mathrani’s honour in 2012. Mathrani then became executive VP of Forest City Ratner.
Source: Women’s Wear Daily
In 2002, Mathrani moved to Vornado Realty Trust, where he was Executive VP running the company’s retail business, also in New York.
In 2010, he became CEO of General Growth Properties, one of the largest mall owners in the country.
At the time, GGP was coming out of what was the largest real estate bankruptcy in history.
In 2018, Mathrani led a sale of GGP to Brookfield Property Partners for a reported $US15 billion. He became CEO of the company’s retail group, and vice chairman of the company.
That deal gave him a reputation for turning around failing businesses. Bloomberg called him a “corporate turnaround artist,” while Mathrani credits his success to “plenty of luck.”
On February 1, WeWork made news of the new CEO public.
Source: Business Insider
Now, Mathrani will first work on hiring more executives, and will.report to WeWork’s executive chairman Marcelo Claure, who is also CEO of SoftBank Group.
Source: The Wall Street Journal