The co-working space movement is about to get a boost in Asia with an injection of $177 million (S$237.7 million) by three entities to develop a platform across Asia.
Singapore’s sovereign wealth fund GIC and multi-national property firm Frasers Property are partnering with homegrown co-working space provider JustCo to expand its presence in Southeast Asia and expand into other Asian markets.
These markets include Greater China (China, Hong Kong, Taiwan and Macau), Korea, Japan, Vietnam, Malaysia, the Philippines, Australia and India.
A joint statement on Wednesday (May 16) said the investment will also support JustCo’s continued focus on ramping up technology solutions and enhance service offerings to facilitate collaboration and networking opportunities among its growing base of community members.
JustCo, which was founded in 2015, currently has a presence in Singapore, Indonesia and Thailand and has brought together a community of entrepreneurs and enterprises of varying sizes. It aims to operate 100 centres in the region by the end of 2020.
GIC Real Estate’s chief investment officer Lee Kok Sun recognises how the co-working movement embraces the flexibility of the sharing economy and is fast changing the way office space is designed, leased, used and operated.
He said: “As a long-term value investor, we are attracted by the sector’s growth potential in the long run and believe that the fragmented nature of the sector presents opportunities for consolidation.”
“Our investment in JustCo will support it in its next phase of growth outside of Singapore as it continues to engage with entrepreneurs and enterprises across Asia.”
Frasers Property’s group CEO Panote Sirivadhanabhakdi said: “We view real estate as a service offering that goes beyond brick and mortar.”
“The combination of thoughtful design, curated service offerings and smart-office technology, can transform office buildings into inspiring, collaborative workspaces that enhance our workplace communities.”