WeWork in collaboration with Daman Land
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