WeWork in col­lab­o­ra­tion with Da­man Land

The Star Malaysia - StarBiz - - News - [email protected]­tar.com.my

PETALING JAYA: New York-based plat­form WeWork has en­tered the Malaysian mar­ket by col­lab­o­rat­ing with lo­cal firm Da­man Land Part­ner­ship.

The plat­form, which pro­vides space, in­te­rior de­sign­ing, of­fice rental and com­mu­nity-based or­gan­i­sa­tion struc­tures will open in Kuala Lumpur in the first quar­ter of 2019. It will have the ca­pac­ity to ac­com­mo­date 1,900 mem­bers across five floors.

WeWork South-East Asia man­ag­ing di­rec­tor Turochas “T” Fuad ( pic) said: “When­ever WeWork comes into a coun­try, it will go to the cap­i­tal city where the busi­ness cen­tre is lo­cated.

“There are plans for ex­pan­sions into other tier two cities although there is no time line for it.

“We have real es­tate scouts look­ing to­wards other cen­tral busi­ness dis­tricts such as Da­mansara and Bangsar,” he told StarBiz.

WeWork planned to ex­pand its foot­print in South-East Asia, with the com­pany grow­ing to 16 lo­ca­tions with more than 11,000 desks across the re­gion in just one year.

The group en­listed Da­man Land di­rec­tor Datuk Dou­glas Cheng in a par­tic­i­pa­tory lease part­ner­ship.

The cur­rent lease re­la­tion­ship with Cheng is “unique” as the Da­man Land di­rec­tor is an in­vestor in Equa­to­rial’s op­er­a­tions and would be an in­ter­me­di­ary in other fu­ture WeWork ven­tures, ac­cord­ing to Fuad.

“Over the last eight years, we have worked with dif­fer­ent land­lords. With cer­tain land­lords, we have formed a par­tic­i­pa­tory lease part­ner­ship where there is a rev­enue split com­po­nent,” Fuad said.

The shared rev­enue agree­ment will see Da­man Land gain from the eco­nomic up­side cre­ated in the lo­ca­tions WeWork oc­cu­pies while WeWork stands to ben­e­fit from Da­man Land’s lo­cal in­sight.

WeWork has three prod­ucts such as hot desks priced at RM950 per month, a ded­i­cated desk at RM1,150 per month, as well as a pri­vate of­fice at around RM1,200 per pax per month.

On de­mand, Fuad said the new WeWork of­fice is see­ing high de­mand.

“StashAway was one of the first few com­pa­nies to have signed up with us.

“With this par­tic­i­pa­tory lease ar­range­ment (with Da­man Land), it can po­ten­tially gen­er­ate beyond 24% of ad­di­tional rental yield.”

On in­vest­ments, the com­pany has se­cured a US$500mil fund­ing from SoftBank which it would use for the South-East Asia and South Korea re­gion.

By TENNIELLE CHUA

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