Singapore-based coworking space chain JustCo today announced that it has teamed up with Singapore’s sovereign wealth fund GIC and multinational property developer Frasers Property to develop coworking space platforms across Asia.
With JustCo already having presence in Indonesia and Thailand, in addition to Singapore, the three companies will invest US$177 million to support the coworking space chain’s expansion into Greater China, Korea, Japan, Vietnam, Malaysia, the Philippines, Australia, and India.
JustCo will also use the investment for product development and service enhancement.
In a press statement, GIC Real Estate Chief Investment Officer Lee Kok Sun explained that the firm is attracted to the long-term growth potential of the coworking space sector.
The firm also believes that its “fragmented nature” presents “opportunities for consolidation.”
“Our partnership with JustCo and Frasers Property will enable us to capitalise on shared synergies and leverage one another’s strengths such as operational expertise, space from existing office portfolios, local market knowledge and network,” he said.
This is not the first time JustCo fostered partnership with a property development group.
In October 2017, the company raised an undisclosed Series B funding round from Thai property developer group Sansiri.
Dealstreet Asia reported that JustCo raised US$12 million from the funding round, putting its valuation to “just under” US$200 million.
Founded in 2015, JustCo had previously merged with Chinese coworking space chain naked Hub, which has recently been acquired by US coworking space giant WeWork.
In a past interview with Channel News Asia, JustCo Founder and CEO Kong Wan Sing explained that the company’s merger with naked Hub was part of its effort to compete with both WeWork and UrWork as the two companies strengthen its expansion into Asia.
Image Credit: JustCo