This article is from the Australian Property Journal archive
MAJOR office landlord, Dexus, has entered into a joint venture with Singapore-headquartered The Work Project (TWP) to create a new flexible workspace business that will look to capitalise on the growing post-pandemic market.
TWP is majority-owned by CapitaLand, the largest premium serviced office operator in Singapore with 14 sites across Hong Kong, Singapore and Sydney.
The new 50-50 venture brings will kick off with an offering 14,000 sqm of flexible space across Brisbane, Sydney, Melbourne and Perth CBDs, primarily located in Dexus-managed buildings.
Dexus said the joint venture will enable it to retain exposure to upside in growth in flexible working. The new entity has a mandate to grow its operations, with the Dexus group portfolio providing many of the future sites.
Dexus executive general manager, office, Andy Collins said: “On-demand premium space and services are becoming increasingly important to our customers. Partnering with a highly experienced regional operator will allow us to leverage proven expertise to expand our customer offering, providing leasing services across the spectrum including core leasing, flexible workspace, co-working, meeting and event spaces and serviced offices.”
Flexible workspace desk rates have been strong as a number of business turn to co-working and serviced offices for their workplace real estate requirements in a post-pandemic world of working-from-home and flexible working. Vacancy rates in the traditional office market lifted again over the past six months, according to the Property Council of Australia, and Dexus saw another $762.4 million wiped off the value of its property portfolio in recent months, with 6.0% coming off the office portfolio.
In Sydney, TWP operates the premium co-working facility at Quay Quarter Tower where Dexus is headquartered and will open additional sites in Sydney in 2024.
The operation of locations of Dexus Place – Dexus’s existing flexible space business – will transfer to TWP, with Dexus Place and TWP retaining their brands. Dexus Place offers flexible space solutions that includes access to meeting rooms and event space, while TWP sites operate a full-service workspace offering across larger scale locations, including co-working.
“The next stage of growth in the flexible workspace sector will be where operators can become an inseparable extension and additional offering to a landlord’s business,” said TWP founder and CEO, Junny Lee said:
“Partnering with Dexus, one of Australasia’s leading real asset managers, will position TWP and Dexus Place for this growth.”
