SINGAPORE, November 2019 – Daito Trust Construction Co., Ltd (“Daito Trust”), a listed construction and real estate company in Japan will invest a US$50 million in JustCo Holdings Pte. Ltd. (“JustCo”). In addition, Daito Trust will invest up to an additional JPY 2.65 billion (US$24 million) to form a new Japan joint venture with JustCo to build and operate flexible workspace business in Japan (the “Joint Venture”). The Joint Venture, JustCo DK (Japan) Co., Ltd., will be 51% owned by Daito Trust and 49% owned by JustCo.
This Joint Venture enable JustCo to expand its network into Japan in response to the needs of JustCo’s regional members and to support its future growth. This strategic partnership will leverage JustCo’s leading capabilities in space planning, workplace technology and community management, combined with Daito Trust’s in-depth knowledge of the Japanese real estate market. The transaction is subject to the satisfaction of certain closing conditions.
JustCo on a sustained growth path
Since the US$177 million joint investment in JustCo from Singapore’s sovereign wealth fund GIC, and multi-national real estate company Frasers Property Limited in May 2018, JustCo has expanded its network from 14 co-working centres in two cities, to close to 40 centres across eight cities today.
Being one of the leading flexible workspace providers with a large multi-city presence in Asia Pacific, JustCo is enjoying buoyant demand for flexible workspace from existing members and a large number of new clients, ranging from start-ups to large enterprises including Fortune 500 companies. Such demand has enabled JustCo to enjoy strong occupancy rates throughout its centres, contributing to faster than expected revenue growth.
In line with JustCo’s vision to “Make Work Better” and further enhance member experience, JustCo's key differentiation is its ability to deploy smart technologies in both physical and digital spaces to create an integrated flexible workspace solution to better serve its communities.
The additional US$74 million funding provided by Daito Trust to JustCo and the Joint Venture, combined with positive cash flow from JustCo’s mature centres and its cash reserves, will enable JustCo to continue to fund its growth plan and benefit from the ongoing consolidation in the flexible workspace market.
Entering Japan, another key market to JustCo’s network
Japan, as the second largest economy in Asia by GDP, is an important market for a large number of JustCo’s existing members. Demand for flexible workspace in key Japanese cities such as Tokyo is fast-growing. Expansion into Japan will further enhance JustCo’s network advantage to better serve the needs of its members. This extends JustCo’s presence in Asia Pacific to eight key markets, including Australia, China, Indonesia, Singapore, South Korea, Taiwan and Thailand, allowing JustCo to better respond to new demands for flexible workspace, further fueling its growth.
Mr. Kong Wan Sing, Founder and Chief Executive Officer, JustCo, 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”.
“We are confident of the strategic partnership with Daito Trust, given their long history in Japan, trusted reputation and local expertise. Our strong corporate governance and financial prudence will continue to serve as the backbone of our business as we expand our network. JustCo aims to cement its position as the leader in Asia Pacific, and has set a new target to operate more than 3 million square feet of co-working spaces by 2021.”About Daito Trust
Founded in 1973 and headquartered in Tokyo, Daito Trust is a construction and real estate company offering an extensive range of services seamlessly from consulting sales of rental housing, design and construction, tenant recruitment to building management. The Company has maintained No.1 market position in Japan in terms of the number of rental brokerage, housing units supplied, and rental housing units under management for 9, 11 and 23 consecutive years, respectively. Especially in the rental housing field, the Company has established an unparalleled position as the number of rental housing units under management totals 1.1 million. After the achievement of the increase in sales and profits for the 11 consecutive years in the fiscal year ended in March 31, 2019, the Company is now implementing the New Five-Year Plan under the leadership of the new CEO Kobayashi from this fiscal year to achieve the continued increase in sales and profits for the twelfth straight year.
Website for tenants: https://www.eheya.net/en/index.html
Founded in 2011 and headquartered in Singapore, JustCo is Asia Pacific’s leading premium flexible workspace provider. We continually disrupt the status quo and redefine collaborative working.
In our communities, we connect dynamic entrepreneurs, start-ups and large corporations. People are at the heart of what we do, as we create networking events and strategic partnerships for our members and partners to gain insights, collaborate, and help each other. Our passion for customer satisfaction ensures our members find the same JustCo hospitality – comfort and peace of mind – no matter where they are.
We make work better by revolutionising how people work, empowering our ever-growing community with exceptional flexibility, opportunities and experiences.
Facebook: https://www.facebook.com/JustCoGlobal/ LinkedIn: https://sg.linkedin.com/company/justco