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Jessie Lim · · 4 min readJustCo plans expansion to 6 new Asian, Middle Eastern markets
JustCo is aiming to double the number of markets it operates in over the next two to three years, as the co-working firm grows its presence in Asia and the Middle East.
In an interview with The Business Times, JustCo’s CEO and founder Kong Wan Sing said the group is looking to expand to Malaysia, the Philippines, Vietnam, Indonesia, and India as well as Dubai in the United Arab Emirates.
Currently, JustCo has 46 locations across its six markets. Twenty of these centers are in Singapore, including one in Samsung Hub that will close by the end of the year.
Kong Wan Sing, JustCo’s CEO and founder / Photo credit: Business Times
“JustCo saw an uplift of almost 20% in demand for January to October 2024 as compared to the same period last year,” Kong says.
The company’s revenue increased by 14.9% from US$99 million in 2022 to US$113 million in 2023, according to its regulatory filings in Singapore.
In the last two years after Covid-19, JustCo was “trying to emerge stronger and do a good job,” Kong notes. “After opening all these (locations), we will cover all of Asia.”
Countries such as Vietnam, Malaysia and India are likely to benefit from the China+1 strategy as firms diversify their operations amid US-China tensions.
“Manufacturing and tech companies would like to set up their offices there and would definitely require flex [space] for expansion needs and diversification from China,” Kong says.
The new markets on JustCo’s radar are also seeing demand from companies looking to build up back-office capabilities.
A different model
As JustCo looks to scale regionally, it hopes to move towards a management contract model. Under this structure, co-working operators are paid to manage the space on behalf of landlords who spend for the capital expenditure costs.
Kong estimates that it could cost up to S$200 (US$148) per square foot to fit out a co-working space in Singapore.
Most co-working spaces are at least 10,000 square feet, and fitting out a unit could cost several million dollars, according to BT’s calculations.
See also: JustCo narrows losses after 2 key market exits
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The co-working operator also aims to transition to a management contract model.
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