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”), a Singapore-based co-working space provider.
In addition, Daito Trust will invest up to an additional US$24 million to form a new Japan joint venture with JustCo to build and operate flexible workspace business in Japan.
The joint venture, JustCo DK (Japan) Co., Ltd., will be 51% owned by Daito Trust and 49% owned by JustCo.
”This joint venture will be an integral part of Daito Trust’s strategy to develop a comprehensive leasing and lifestyle business, whilst enabling JustCo to expand its network into Japan in response to the needs of JustCo’s regional members and to support its future growth,” said in a statement.
”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.
“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 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. Japan is one of the key growth markets for us. 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,” said Mr. Kong Wan Sing, Founder and Chief Executive Officer, JustCo.
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.