The Flexi Group To Open Singapore Coworking Centres
SINGAPORE – Newly merged coworking player The Flexi Group plans to open outlets in Singapore, Malaysia, Thailand, the Philippines, and Australia in the next 12 months, reported DealStreetAsia and the Vulcan Post on Tuesday morning (16 August, SGT).
Notably, it was just announced that Malaysia’s Common Ground, Hong Kong-based the Hive, and Australian brand The Cluster have merged into The Flexi Group.
While the three coworking space operators will come under one umbrella, each brand will be kept separate. The merger is supported by investment from Singapore-based Catcha Group and Malaysia-based Emissary Capital.
Post-merger, The Flexi Group will have 45 coworking centres across 9 countries and 12 cities across the Asia Pacific (APAC) region.
In a press release published on Tuesday, the group stated that the latest merger is part of a series of planned consolidations in preparation for an initial public offering (IPO).
The Flexi Group thinks that getting listed on a stock exchange will enable it to consolidate the flexible workspace sector in the region via mergers and acquisitions (M&As) and thereby lead the future of work trend in Asia Pacific and abroad.
Notably, the group has adopted an asset-lite approach, wherein it teams up with landlords on joint ventures (JV) instead of formally leasing large office space. Their landlord partners include Hong Kong’s Chinachem Group, Central Group in Thailand, Malaysia’s Petronas, and Ortigas in the Philippines, as well as Australia’s Hirsch and Faigen.
“The (landlords) work with us to help engage the tenants in their buildings, offering them access to best-in-class events, flexible work solutions and bookable meeting and event spaces,” said Chris Edwards, Hive’s former Chief Operating Officer who was just appointed as The Flexi Group’s new Chief Executive.
Commercial property owners “can also unlock revenue potential as our partners see increased returns of up to 30 percent versus a traditional lease structure,” he added.