Merger of Asian co-working space operators JustCo and naked Hub falls through

Photo: naked Hub website

The proposed merger of co-working space operators naked Hub of Shanghai and JustCo of Singapore, which would have created the largest premium co-working space operator in Asia, has been called off.

Eileen Wee, the marketing communications manager of JustCo, told DEALSTREETASIA that the conditional merger between the two co-working space operators, announced in July 2017, did not materialize eventually.

“In the course of due diligence that was carried out in the past months, we realized there were expectations unaligned in key aspects of the conditional merger, hence in the best interest of both parties, the conditional merger did not proceed,” Wee said.

The two co-working space operators earlier announced plans to merge to compete with industry leader WeWork, whose operational footprint in Asia extends to China, Hong Kong, and India.

naked Hub currently has 44 hubs open or in the pipeline across the world in Mainland China, Hong Kong, Vietnam, Australia, and the UK. It aims to operate 194 co-working spaces by 2020. In October 2017, the company announced plans to go public in Hong Kong this year after a fresh round of fundraising.

Last week, China Money Network reported that naked Hub was planning to acquire Australia’s premium co-working space provider Gravity Coworking as part of its efforts to expand its presence globally.

A spokesperson for naked Hub, however, told DEALSTREETASIA that the deal has not been officially signed yet and is expected to be inked this week.

JustCo, meanwhile, secured $12 million in a Series B round from Thailand’s listed property developer Sansiri Plc last October 2017.

JustCo currently operates four locations in Singapore with a total space of 180,000 square feet. Following the funding, it will accelerate its expansion into Bangkok, Ho Chi Minh City, Jakarta, Kuala Lumpur and Manila, with a target to have a total of 30 co-working spaces covering one million square feet by next year.

Also Read:

naked Hub merges with Singapore’s JustCo to take on industry leader WeWork

Indonesia: JustCo, Gunung Sewu form co-working space JV

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.