KUALA LUMPUR, MALAYSIA – Media OutReach – 31st May, 2018 – Luxurious coworking space and serviced office provider Colony has scored a RM5.6 million coworking tenant deal, making it the largest of its kind in Malaysia. The deal will see the undisclosed regional importer and distributor in the food industry move its regional headquarters to become the anchor tenant of Colony’s soon to be open KL Eco City location, with over RM4 million in rental and another RM1.6 million for future expansion space that Colony is committed to provide.
This potentially marks the beginning of a shift in the coworking space industry in Malaysia. Traditionally dominated by digital nomads, freelancers and startups, coworking spaces globally have in recent years see a surge in usage among corporates. This is expected to grow with a CBRE Enterprises Survey revealing that 65% of enterprise companies plan to incorporate coworking into their portfolio offerings by 2020. Large deals like this from Colony seem to indicate that the wave of corporates using coworking spaces has hit Malaysian shores.
Timothy Tiah, Founder of Colony, added “People often say that our competitors are other coworking spaces. That can’t be farther from the truth. Most of the deals we lose, we don’t lose them to other coworking spaces or serviced offices. We lose them to traditional office space“.
In the coming years, Colony expects the facilities and services of its luxury coworking spaces to grow and correspond with its increasing prices. The Company aims to introduce more services and facilities not found in traditional office spaces and that also distinguish itself from the typical coworking spaces.
“We won this deal not because we were the cheapest in price but because we have a very differentiated product and a compelling offering that it actually makes sense to base even a large company out of Colony instead of having a traditional office lease”. -Nitaya Pirinyuang, General Manager of Colony
Along with other pre-launch deals, Colony @ Eco City that is only due to open at the end of June already has over 50% of its space booked up.
This landmark deal is a milestone for 10-month old Colony that just recently took in an investment from Cornerstone Partners Group at a US$15-US$20 million valuation. The Company has raised US$5 million to date.
Colony is a luxurious coworking space and serviced office provider based in the heart of Kuala Lumpur with plans and pricing curated to eliminate hefty set-up costs, maintenance hassle, and long-term rental contracts. Raved over for its chic and Instagram-worthy interior, the company aims to enable guests to focus on their life’s work and reach new heights while all else is taken care of. The company is backed by Oak Drive Ventures, Cornerstone Partner’s Group and family offices around the region.