Hysan Development will acquire and operate 32 of IWG’s locations in Asia’s Greater Bay Area.
Of the 32 locations, 16 are located in Hong Kong and are operated under the Regus, Spaces and Signature brands.
“The workspace ecosystem is fast evolving to better meet end users’ needs and expectations, and flexible workspace will play an important part,” said Ricky Lui, chief operating officer of Hysan Development. “The joint venture reflects our confidence in the economic growth of the Greater Bay Area.”
Office rents in Hong Kong have fallen by a quarter of what they were two years ago, while demand for office space has also decreased due to the popularity of remote working arrangements.
However, as companies pivot to hybrid work models, many business leaders are cutting down their real estate footprint and turning to flexible office space operators to provide workers with an agile office to come into.
“Operators with a strong track record of successfully running flexible workspace locations, at scale, are more interesting for investors, particularly operators with a robust client base and potential to tap into the corporate real estate market, which IWG certainly have,” said Jonathan Wright, director of flexible workspace consulting at Colliers.