Another day, another co-working investment being made in Southeast Asia. This one saw private equity fund 5X Capital acquire a stake in Malaysian firm Colony Coworking Space. Terms of the agreement were not disclosed. In addition to its namesake brand, the company also operates the Jerry Coworking brand.
The investment is strategic for both 5X Capital and Colony Coworking Space. The former gains an interest in a known local player while the latter can continue its focus on sustainable growth. According to the co-working outfit, it has now raised MYR30 million (USD6.94 million) from investors and landlords to build its spaces across Malaysia since first launching in 2017.
“Colony has always been about sustainable growth: Growing while maintaining a minimum of being EBITDA neutral so we don’t burn cash. With that we find 5X Capital as partners that are aligned with our goal of sustainable growth,” Timothy Tiah, Colony Coworking Space CEO, said. “Their experience and resources will be invaluable as we continue to expand and meet the growing demand for coworking spaces in the region.”
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The Flexi Group merger aims to shape co-working in Southeast Asia
The co-working landscape in Asia could be shifting after the announcement of a merger between Common Ground, Hive and The Cluster. This trio has come together to form The Flexi Group and was backed by Singapore-based internet company Catcha Group and Malaysia-based boutique investment Emissary Capital.
Ultimately, the creation of The Flexi Group brings together 45 locations across 12 cities in nine countries throughout Asia. The new firm will operate in Hong Kong, Singapore, Malaysia, Thailand, Taiwan, the Philippines and Japan, among other places.
According to The Flexi Group, what makes it different from other co-working players is its asset-light approach where it teams up with landlords via joint venture agreements. That is true and its portfolio is noticeable in that regard having existing partnerships with Chinachem Group in Hong Kong, Petronas in Malaysia, Central Group in Thailand and Ortigas in the Philippines.
