Hysan Secures Right To Operate All IWG-branded Flexible Workspaces In HK
HONG KONG – Local commercial property landlord Hysan Development and flexible office operator IWG has formed a joint venture (JV) that has the exclusive right to run IWG-branded coworking spaces in the city and within the Greater Bay Area (GBA), according to a press release published on Monday (9 August, SGT).
Notably, the JV will purchase and operate IWG’s 32 existing outlets in GBA, including Hong Kong. It will also continue to expand IWG’s presence in the region.
“In the wake of the COVID-19 pandemic, we are seeing record levels of demand as companies embrace hybrid work and rethink their real estate strategy,” commented Mark Dixon, CEO and Founder of IWG.
“Partnering with a leading local developer like Hysan, with whom we have built a strong relationship over many years, will enable us to scale up more rapidly to meet this demand across the GBA.”
While the partners didn’t divulge their respective stakes in the JV, the transaction highlights IWG’s continuing shift towards an asset-light franchising business model, as the flexible workspace giant IWG signs up deals with landlords and sell franchises related to its growing network of flexible workspace.
Hysan Development, one of the top lessors of commercial bay in Hong Kong’s Causeway Bay, has done business with IWG in 2020. Back then, the flexible office space operator leased 30,000 sq ft at the Hysan Place tower within Causeway Bay, a vibrant shopping hub in the Chinese territory.
“We are pleased to expand our business into GBA through this strategic joint venture with IWG. The workspace ecosystem is fast evolving to better meet end users’ needs and expectations, and flexible workspace will play an important part. The joint venture reflects our confidence in the economic growth of GBA,” added Hysan Development’s COO Ricky Lui.
Interestingly, that 30,000 sq ft workspace was surrendered by IWG’s rival WeWork due to financial issues following a failed Initial Public Offering (IPO). Other former WeWork office space in Hong Kong taken up by IWG included that in The Quayside in Kowloon East, as well as The Gateway in Tsim Sha Tsui.