Daito Trust to invest $74m in Singapore JustCo, new Tokyo co-work centres
SINGAPORE, NNA – Japanese real estate firm Daito Trust Construction Co. will invest a total of $74 million in Singapore-based co-working space operator JustCo Holdings Pte. Ltd. to help fund its expansion plans as demand for innovative office space increases.
Daito Trust will pump $50 million into JustCo and provide an additional $24 million to start a joint venture to build seven to nine co-working outlets in Tokyo.
The unit, JustCo DK (Japan) Co., will see Daito Trust holding a 51 percent stake and JustCo taking the remaining 49 percent, both said in their statements on Thursday.
Tokyo-listed Daito Trust decided to partner with JustCo because of its "strength in providing flexible office designs to a wide range of customers,” Naruya Yoshida, a corporate planning official told NNA.
Daito Trust, which engages in housing construction and rental as well as property management, has aimed to become a total lifestyle support company under its five-year plan since April this year.
It will strengthen its comprehensive leasing and total lifestyle support service operations, in addition to efforts to bolster its core businesses in rental housing and expand market share, said Katsuma Kobayashi, Daito Trust president and representative director (CEO), said in its statement
He added: "The flexible workspace business is one of the key elements in our comprehensive leasing business, and we believe the collaboration with JustCo marks a significant step forward."
In Tokyo, the co-working spaces are expected to be set up in high-demand districts such as the vicinity around Tokyo Station and posh Roppongi over the next two years, Naruya Yoshida told NNA.
JustCo has expanded its network from 14 co-working centres in two cities, to close to 40 centres across eight cities today after receiving a significant joint investment of $177 million from Singapore’s sovereign wealth fund GIC and global real estate service firm Frasers Property Ltd. in May last year.
Startups as well as large enterprises including Fortune 500 companies have contributed to its strong occupancy in Australia, China, Indonesia, Singapore, South Korea, Taiwan and Thailand, Justco reported.