Three Big Companies Invest $177M For Coworking Spaces Across Asia
The concept of coworking spaces has increased overtime and more and more companies are making a transition towards it. Today, companies are joining hands to create working spaces that help people to sit freely and work whenever they want. Many people might share these coworking spaces at the same time.
In this move to further expand the concept of coworking space, Frasers Property, JustCo and GIC have announced that they will be investing a whopping $177M in order to build these space platforms throughout Asia.
Frasers Property is a well-known real estate firm, whereas GIC is a renowned wealth fund in Singapore. JustCo, itself, is a coworking space provider. Today, it has been revealed that all these big names are joining hands with one another to come up with coworking spaces across Asia.
As of now, JustCo only has its presence in Singapore, Thailand and Indonesia. However, once these coworking spaces are built, the company is going to be able to expand its operations and presence in the South East Asia. It will also be able to expand in other Asian markets as well such as Australia, Japan and China.
Once the investment money for these spaces goes through, it will also support these companies motive of ramping up and coming forth with authentic technology solutions in order to enhance the services that they offer to its clients. The companies, while talking about the new venture, said, “This is a new motive to bring new solutions in the tech world and for enterprises to facilitate ease and bring noteworthy solutions to people in Asia. This is also a great networking opportunity for us”.
CEOs of both GIC Real Estate and Frasers Property also spoke about these new investments and said that the coworking space initiative helps in bringing a shared economy into life, where people can easily work whenever they want, without having the companies to design or lease these spaces. This means lesser investments and lesser expenditures for these big companies that will have one collective place to work.
Panote Sirivadhanabhakdi, group Chief Executive Officer of Frasers Property, also said that the partnership will provide a leeway into the global scale of both GIC and Frasers Property, which will help in accelerating the expansion of the JustCo network itself, as well as enhance customer connections.
On the other hand, Frasers Property also announced that it has started a subscription agreement, a new agreement with JustGroup Holdings to start a new subscription for 13.2% of the paid up and issued capital to JustGroup Holdings.
The total investment for JustGroup subscription, as well as the JV subscription totals up to $60M. Moreover, Frasers Property also announced that the above transactions would not have a significant or material impact on the net tangible assets a share of the group.
The new investments by the three companies are going to prove to be highly successful for Asia in general, which will now have access to larger coworking spaces.