Co-working firm JustCo and sovereign wealth fund GIC team up with $177m mega-investment

JustCo founder and CEO Kong Wan Sing (center, front) / Photo credit: JustCo

Southeast Asia’s shared workspace market has certainly been warming up over the past year or so, with a clamor for new providers, big-money investments, and M&A activity.

Well, things just got a whole lot hotter.

Singaporean co-working provider JustCo today announced a partnership with GIC, the city-state’s sovereign wealth fund, and local developer Frasers Property. The three companies are pooling US$177 million to invest in shared workspaces throughout the region.

It wasn’t immediately clear how much each partner is contributing to the investment.

While the three firms are framing the deal as a collaboration, a statement released today suggests that at least part of the transaction involves a strategic investment in JustCo by the other two.

“Our investment in JustCo will support it in its next phase of growth outside of Singapore,” said Lee Kok Sun, chief investment officer at GIC Real Estate.

JustCo founder and CEO Kong Wan Sing added, “The confidence that GIC and Frasers Property have instilled in JustCo is a testament to our [technology and expertise], and we are extremely humbled to have found the right investors who share the same vision and purpose. This round of investment will help us enhance and redefine the flexible workspace experience through multi-geographical footprints.”

According to the statement, the capital will be used to “develop a co-working space platform across Asia.”

JustCo, which already operates co-working venues in Singapore, Indonesia, and Thailand, said that the new funding will allow it to expand its presence throughout the region. It will also target entry into markets further afield, such as Greater China, India, Japan, South Korea, and Australia.

The company said it will also use the capital to enhance tech solutions as well as opportunities for collaboration and networking for its user base.

JustCo’s last funding was its series B round last October. While it didn’t disclose how much it raised, the startup claimed a post-money valuation of US$200 million.

It said at the time it was aiming to operate 30 shared workspaces totaling 1 million square feet across Asia Pacific by the end of this year, with first-time venues slated to open in Bangkok, Ho Chi Minh City, Jakarta, Kuala Lumpur, and Manila.

Chinese shared workspace unicorn Ucommune has been making its presence felt in the region, selecting Singapore for its first foreign location last July and strategically investing in Indonesia’s Rework a few months later.