SINGAPORE – Media OutReach – 28 November 2019 – Daito Trust
Construction Co., Ltd (“Daito Trust”), a listed construction and real estate
company in Japan will invest a US$50 million in JustCo Holdings Pte. Ltd.
(“JustCo”). In addition, Daito Trust will invest up to an additional JPY 2.65
billion (US$24 million) to form a new Japan joint venture with JustCo to build
and operate flexible workspace business in Japan (the “Joint Venture”).
The Joint Venture, JustCo DK (Japan) Co., Ltd., will be 51% owned
by Daito Trust and 49% owned by JustCo.
This Joint Venture will be an integral part of Daito Trust’s
strategy to develop a comprehensive leasing and lifestyle business, whilst enabling JustCo to expand its
network into Japan in response to the needs of JustCo’s regional members and to support its future
growth. This strategic partnership will leverage JustCo’s leading capabilities in space planning,
workplace technology and community management, combined with Daito Trust’s in-depth knowledge of the
Japanese real estate market. The transaction is subject to the satisfaction of certain closing
conditions.
JustCo on a sustained growth path
Since the US$177 million joint investment in JustCo from
Singapore’s sovereign wealth fund GIC, and multi-national real estate company Frasers Property Limited in May
2018, JustCo has expanded its network from 14 co-working centres in two cities, to close to 40
centres across eight cities today.
Being one of the leading flexible workspace providers with a large
multi-city presence in Asia Pacific, JustCo is enjoying buoyant demand for flexible workspace from
existing members and a large number of new clients, ranging from start-ups to large enterprises
including Fortune 500 companies. Such demand has enabled JustCo to enjoy strong occupancy rates
throughout its centres, contributing to faster than expected revenue growth.
In line with JustCo’s vision to “Make Work Better” and further
enhance member experience, JustCo’s key differentiation is its ability to deploy smart technologies in
both physical and digital spaces to create an integrated flexible workspace solution to better serve its
communities.
The additional US$74 million
funding provided by Daito Trust to JustCo and the Joint Venture, combined with positive cash flow from JustCo’s mature centres and
its cash reserves, will enable JustCo to continue to fund its growth plan and benefit from the
ongoing consolidation in the flexible workspace market.
Entering Japan, another key market to JustCo’s network
Japan, as the second largest economy in Asia by GDP, is an
important market for a large number of JustCo’s existing members. Demand for flexible workspace in key
Japanese cities such as Tokyo is fast-growing. Expansion into Japan will further enhance JustCo’s
network advantage to better serve the needs of its members. This extends JustCo’s presence in Asia
Pacific to eight key markets, including Australia, China, Indonesia, Singapore, South Korea,
Taiwan and Thailand, allowing JustCo to better respond to new demands for flexible workspace, further
fueling its growth.
Positioning JustCo for success in Japan
Understanding each market’s local nuances is critical to JustCo’s
success in the region. JustCo’s strategic partnership with Daito Trust is expected to catalyze
JustCo’s market entry into Japan, and further enhance its localization capabilities to offer customized
workspace solutions and curate relevant community programs for local members and their
businesses. Similar to the other markets which JustCo is already present in, there will be a local team on
the ground to manage the business.
JustCo and Daito Trust share a long-term commitment to develop a
successful flexible workspace business in Japan. The investment in JustCo and establishment of
the Joint Venture will enable Daito Trust to realize its strategy to expand beyond its traditional
business of rental housing and become a comprehensive lifestyle support company.
Daito Trust is a leading construction and real estate company in
Japan, offering an extensive range of services seamlessly from consulting sales of rental housing, design
and construction, tenant recruitment to building management, with esteemed record of
consistent growth in sales and profits for 11 consecutive years to achieve net sales in excess of JPY 1.5
trillion and net profit of JPY 90 billion for the fiscal year ended March 31, 2019. With a No.1
market position in Japan, Daito Trust will tap on its deep customer base, local market knowledge, local
design and development capability and a strong local network of brokers to contribute meaningfully to
the Joint Venture.
Mr. Katsuma Kobayashi, President and Representative Director
(CEO), Daito Trust, said, “Our Group achieved accelerated growth as a company specialized in rental
housing, and is now implementing the New Five-Year Plan from the fiscal year 2019. Under the slogan
of ‘becoming a company that our stakeholders feel comfortable, entrusting their dreams and future
to and that can generate sustainable growth’. Our Group aims to become a total lifestyle support
company by strengthening comprehensive leasing and total lifestyle support service business operations,
in addition to our efforts to bolster the core businesses (rental housing field) and expand market share.
The flexible workspace business is one of the key elements in our comprehensive leasing business, and
we believe the collaboration with JustCo marks a significant step forward.”
Mr. Kong Wan Sing, Founder and Chief Executive Officer, JustCo,
said, “The investment from Daito Trust is testament to the long-term growth potential of the flexible
workspace industry and JustCo’s sustainable growth and leadership in the region. The scale of the
Japanese market opportunity will contribute significantly to the growth of JustCo. Japan is one of
the key growth markets for us. We are confident of the strategic partnership with Daito Trust, given
their long history in Japan, trusted reputation and local expertise. Our strong corporate governance
and financial prudence will continue to serve as the backbone of our business as we expand our network.
JustCo aims to cement its position as the leader in Asia Pacific, and has set a new target
to operate more than 3 million square feet of co-working spaces by 2021.”
For high resolution images, kindly click here.
About Daito Trust
Founded in 1973 and headquartered in Tokyo, Daito Trust is a
construction and real estate company offering an extensive range of services seamlessly from consulting
sales of rental housing, design and construction, tenant recruitment to building management. The
Company has maintained No.1 market position in Japan in terms of the number of rental brokerage,
housing units supplied, and rental housing units under management for 9, 11 and 23 consecutive years,
respectively. Especially in the rental housing field, the Company has established an unparalleled
position as the number of rental housing units under management totals 1.1 million. After the
achievement of the increase in sales and profits for the 11 consecutive years in the fiscal year ended in
March 31, 2019, the Company is now implementing the New Five-Year Plan under the leadership of the
new CEO Kobayashi from this fiscal year to achieve the continued increase in sales and profits for
the twelfth straight year.
Website: https://www.kentaku.co.jp/e/
Website for tenants: https://www.eheya.net/en/index.html
About JustCo
Founded in 2011 and headquartered in Singapore, JustCo is Asia
Pacific’s leading premium flexible workspace provider. We continually disrupt the status quo and
redefine collaborative working.
In our communities, we connect dynamic entrepreneurs, start-ups
and large corporations. People are at the heart of what we do, as we create networking events and
strategic partnerships for our members and partners to gain insights, collaborate, and help each other.
Our passion for customer satisfaction ensures our members find the same JustCo hospitality — comfort and
peace of mind — no matter where they are.
We make work better by revolutionising how people work, empowering
our ever-growing community with exceptional flexibility, opportunities and experiences.
Website: https://www.justcoglobal.com/
Facebook: https://www.facebook.com/JustCoGlobal/
LinkedIn: https://sg.linkedin.com/company/justco
Instagram: https://www.instagram.com/justcoglobal
JustCo Locations
Singapore
1. 6 Raffles Quay
2. 20 Collyer Quay
3. 51 Bras Basah Road
4. 120 Robinson Road
5. Asia Square Tower 2
6. AXA Tower
7. China Square Central (Opening in Q1 2020)
8. MacDonald House
9. Manulife Tower
10. Marina One (East Tower)
11. Marina One (West Tower)
12. Marina Square
13. Ocean Financial Centre (Verizon Innovation Community)
14. Samsung Hub (L12)
15. Samsung Hub (L25)
16. UIC Building
17. Westgate Tower
Shanghai,
China
1. LL Land Tower (Opening in Q1 2020)
2. Raffles City Changning
3. Wheelock Square
Jakarta,
Indonesia
1. AIA Central
2. Sequis Tower
3. The Plaza
Bangkok,
Thailand
1. AIA Sathorn Tower
2. Capital Tower, All Seasons Place
3. Samyan Mitrtown
Seoul,
South Korea
1. Ferrum Tower
2. Seoul Finance Centre
3. JustCo Tower
4. The Pinnacle Gangnam
Melbourne,
Australia
1. 15 William Street
2. 276 Flinders Street
3. 447 Collins Street (Opening in Q2 2020)
Sydney,
Australia
1. 60 Margaret Street
2. 175 Pitt Street
Taipei,
Taiwan
1. Hung Tai Financial Plaza
2. Minsheng Jianguo
3. Dian Shih (Opening in Q1 2020)
