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Home Daily Digest

JustCo on its way to becoming a unicorn

Aayat AlibyAayat Ali
December 21, 2018
in Daily Digest
Reading Time: 2 mins read
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JustCo is one of Singapore’s biggest coworking operators in Singapore, with 13 spaces throughout the region and two more set to open next year.

“In the last four months, we have more than doubled our footprint in Singapore and around Asia,” said Kong Wan Sing, founder and CEO of JustCo. “Next year, we will double in size every six months. Around Asia, Just- Co is opening a new co-working space every three weeks.”

Survey

They also have locations throughout Sydney, Melbourne, Beijing, Shanghai, Bangkok, and many more.

Kong believes that coworking is here to stay, saying that scaling is vital for operators to survive in the market.

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CBRE reports that 10 coworking locations that are under 10,000 square feet have had to close their doors in the last 12 to 18 months. Just earlier this month, JustCo opened a 20,990 square foot coworking space at The Plaza Tower in Jakarta.

The company’s massive growth can be attributed to the $177 million investment it received from GIC Real Estate and Frasers Property last May. They also received $12 million in funding from Thai developer Sansiri.

Kong says he believes coworking is changing the real estate sector, for both retail and office spaces. JustCo was once offered a 5,000 square foot space in Marina Square, but after discussing with the mall’s manager, the offer was increased to 30,000 square feet, which led them to becoming the largest coworking space in a mall.

“Many malls are not doing well— not just in Singapore, but elsewhere too,” Kong said. “We have people flying in from Malaysia, the Philippines, South Korea to check out the space.”

Small and large coworking firms have growth on the agenda according to Chris Archibold, JLL’s

head of leasing.

CBRE Research shows that coworking in Singapore will double its footprint to 1.48 million square feet of office space, but is expected to slow down in 2019.

“New and in-the-pipeline co-working facilities are growing ever larger as operators seek to differentiate themselves,” said Desmond Sim, CBRE head of research for Singapore and Southeast Asia. “At the same time, there is keen interest from co-working players in China and Malaysia, among others, looking to set up their first locations in Singapore, albeit at the right pricing.”

Campfire, a Hong Kong firm, announced it would be taking up an 11-story building, totaling 85,000 square feet. CBRE has also entered the coworking market with their brand Hana.

Kong says that JustCo is seeking to take up entire buildings to add value to the building, showing owners that the company is more than just a tenant.

The company also has goals to power its own building by developing their own technology and app.

60% of JustCo’s members are business enterprises, including interior design firms, Temasek Holdings, and ByteDance, which created the popular app TikTok.

“We now need at least 20,000 sq ft of space for our office,” Kong said. “Singapore is our headquarters, and our design and IT teams are housed here.”

Kong says that JustCo is on its way to becoming a unicorn: a startup that is valued by at least $1 billion.

Tags: daily_digest
Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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