Singapore-based co-working space operator JustCo has raised $74 million from Japan-listed construction and real estate company Daito Trust, according to a statement.
Daito Trust will invest $50 million in JustCo and an additional 2.65 billion yen ($24 million) to set up a joint venture to operate a flexible workspace business in Japan. The JV will be 51 per cent owned by Daito Trust and 49 per cent by JustCo.
The planned expansion to Japan will extend JustCo’s presence in the Asia Pacific to eight key markets, including Australia, China, Indonesia, Singapore, South Korea, Taiwan and Thailand, the company said.
“The investment from Daito Trust is testament to the long-term growth potential of the flexible workspace industry and JustCo’s sustainable growth and leadership in the region. The scale of the Japanese market opportunity will contribute significantly to the growth of JustCo,” said JustCo founder and CEO Kong Wan Sing.
The Singaporean firm aims to operate over 3 million square feet of spaces by 2021.
In May 2018, JustCo had secured $177 million from Singapore’s sovereign wealth fund GIC, and multi-national real estate company Frasers Property Limited. Since then, the co-working space operator has expanded its network from 14 co-working centres in two cities to close to 40 centres in eight cities.
Founded in 1973 and headquartered in Tokyo, Daito Trust is a construction and real estate company that now aims to become a lifestyle services provider by strengthening comprehensive leasing and total lifestyle support service business operations.
“The flexible workspace business is one of the key elements in our comprehensive leasing business, and we believe the collaboration with JustCo marks a significant step forward,” said Katsuma Kobayashi, president and representative director (CEO) of Daito Trust.
