JustCo strengthens asset-light strategy with signing of new property in Singapore

Singapore-based JustCo has signed an agreement with T-Grande Property Holding to strengthen its asset-light strategy, which allow the co-working firm to manage spaces instead of taking on long-term leases.

Photo credit: JustCo

Under the agreement, JustCo will handle 30,000 square feet of T-Grande-owned real estate at Asia Green in Tampines, Singapore, from the third quarter of 2021. Asia Green tenants, meanwhile, will become part of JustCo’s community of over 100,000 members and gain access to its platforms.

Earlier, JustCo’s model had been to lease office spaces from commercial buildings and sub-leasing them to our members. With the Asia Green property, the company will only be managing the space (as opposed to leasing it from the building).

It says that this shift towards an ‘asset-light’ strategy will allow JustCo to focus on their core expertise, such as space usage optimization, workspace technologies implementation, and community management.

Shorter business cycles and greater uncertainty in an age of increased competition have propelled the demand for flexible workspace solutions, according to JustCo.

“With 30% of global office inventory projected to become flexible by 2030, corporations are looking to landlords to offer more than just an empty office space,” said founder and CEO Kong Wan Sing.

Last year, the startup said it welcomed new customers into its community, such as Tencent-backed Riot Games, cosmetics giant L’Oreal, and social banking platform Kasikorn Line.

Founded in 2011, JustCo connects entrepreneurs, startups, and large corporations in its communities, as well as creates networking events and strategic partnerships for its members and partners.

The development comes after the company raised US$12.4 million in investment from Frasers Property in January 2020.