JustCo made the deal barely two months after it closed a Series B funding round from Thailand’s largest property developer Sansiri. That round gave the Singaporean firm a $200-million valuation.
The new JV firm will be a 65:35 per cent equity sharing between JustCo and Gunung Sewu, respectively. Investment figures were not disclosed.
Gunung Sewu has diversified businesses in food, property, insurance and manufacturing.
Both companies are targeting operating four JustCo centres in Indonesia in 2018. JustCo founder and CEO Kong Wan Sing said the first centre to open will be situated in Sequis Tower, one of Gunung Sewu’s premium properties located in the heart of Jakarta’s Sudirman Central Business District.
The premium skyscraper was developed by Gunung Sewu’s property business line. It offers walking distance convenience to the upcoming Istora MRT station, with pedestrian access to nearby Jakarta Stock Exchange, malls, hotels and banks.
Gunung Sewu chairman Husodo Angkosubroto said the joint venture with JustCo is in line with their company’s increased focus on startups and tech-related businesses.
“Indonesia is a potentially sizeable market with the co-working culture on a rising trend thanks to the exponential number of entrepreneurs and booming of the digital market,” Angkosubroto said. “With JustCo’s acute business strategy and tenacity, we are confident and excited how this joint venture will drive more innovative communities and successful entrepreneurship in Indonesia.”
JustCo currently has 11 centres in Singapore and Shanghai, and plans to expand its portfolio in the region to 30 centres spanning across a combined floor area of more than 1,000,000 sq ft to become the number one player in Asia in 2018.
In addition to Jakarta, bold expansion plans are in place to foray into strategic cities like Bangkok, Kuala Lumpur, Ho Chi Minh City and Manila.