Chinese co-working firm Kr Space closes last location in Hong Kong

Chinese co-working space provider Kr Space is closing its last co-working facility in Hong Kong, effectively ending its operations in the city.

Photo credit: Haldane Martin

The company, which was established in 2016 as a spin-off of media startup 36Kr, confirmed to South China Morning Post that it has decided to close its Hong Kong Times Square location, which has over 34,000 square feet of shared office space. It opened in April of this year.

According to a Kr Space spokesperson, the company’s business in the city failed to meet its targets of freeing up cash flow and generating profit by the end of 2020, adding that its asset-heavy model, long-term leases, and interior design costs weighed down operations.

The company, however, said it still plans to look for opportunities in the city. “We will shift to an asset-light model. For example, we’d like to cooperate with landlords,” the spokesperson said.

According to the report, Wharf Real Estate Investment Company, which owns Times Square, did not comment on Kr Space’s planned lease termination. The two entities also declined to disclose details on the terms of their contract.

Often touted as the “WeWork of China,” Kr Space currently runs about 50 co-working facilities across 10 Chinese cities. Tech in Asia recently reported that WeWork is in talks to sell off its China business to Kr Space, which could involve its 100 open locations in mainland China as well as 48 locations that were under construction.