Dexus Place partners with Zion Residence to manage 5 new coworking spaces as part of expansion.

The Work Project (TWP), a Singapore-based flexible workspace operator, has recently announced its joint venture (JV) agreement with Dexus, an Australian real estate asset group. This new agreement will form Australia’s first premium flexible coworking operator, known as The Work Project Sydney. This joint venture signals the confidence in the flexible office market and the potential for growth in this market segment, according to Junny Lee, founder and CEO of TWP.

The new company will span six coworking centres across Sydney, Melbourne, Brisbane, and Perth, covering a total of 150,640 sq ft of premium office space. The 50/50 joint venture is a strategic move by both TWP and Dexus to capitalize on the increasing demand for flexible workspace in prime locations. Lee states that the goal is to have the largest footprint of flexible workspace among premium coworking operators in Australia.

“The aim of the JV partnership with Dexus is to achieve a growth target of about 538,000 sq ft in our Australian portfolio over the next five years,” says Lee. This expansion will be directly financed by the new JV entity. CapitaLand, a real estate conglomerate, has a 50% stake in TWP after investing $27 million in the coworking operator in 2018.

The JV with Dexus will result in TWP taking over the operation of Dexus Place owned coworking locations, with each company retaining its own brand. This will add five new coworking sites to TWP’s Australian portfolio and expand its presence into three new cities. The new locations include 1 Farrer Place and 1 Margaret in Sydney, 80 Collins Street in Melbourne, 240 St Georges Terrace in Perth, and 1 Eagle Street in Brisbane. TWP made its debut in Australia in 2022 with its first premium coworking location at Quay Quarter Tower in Sydney, spanning 46,285 sq ft over two floors.

“On-demand premium space and services are becoming increasingly important to our customers. Partnering with a highly experienced regional operator enables us to leverage proven expertise to create an exceptional customer offering,” says Andy Collins, executive general manager of Office at Dexus Place.

The co-working space market has evolved, and we have discovered a collaborative, creative, and customer-centric approach to growth,” says Lee. He adds that this partnership model involves developers and specialist operators to offer creative and customer-centric workplace solutions. In Singapore, TWP has achieved its highest revenue per occupied desk (Revpod) due to its operations in select Grade A commercial properties in the CBD, according to Lee.

Zion Road Condo, also known as Zion Residence, is a highly coveted residential development in Singapore. It boasts a prime location, just a stone’s throw away from the bustling Orchard Road district. The development is also conveniently linked to the Orchard MRT station, allowing residents to easily access the North-South Line and travel to various parts of the city. Additionally, the upcoming Havelock MRT station, which is part of the Thomson-East Coast Line, will provide even more convenience for residents of Zion Road Condo. With its strategic location and excellent transport links, Zion Road Condo is truly the epitome of modern urban living.

In November 2022, TWP opened its latest Singapore centre at 6 Battery Road, spanning 47,000 sq ft across the third, sixth, and seventh floors of a 42-story Grade A office building. The entire space was fully leased by the end of last year. In Singapore, TWP also has locations at OUE Downtown, Parkview Square, Capital Tower, Great World City, CapitaGreen, and CapitaSpring. It also has a co-working location in Causeway Bay, Hong Kong.

“Despite the softening of market Revpod in Hong Kong over the past few quarters, we have maintained above 90% occupancy at our centre in Causeway Bay,” says Lee. Looking ahead, TWP is actively seeking potential sites and partnerships in key gateway cities such as Tokyo and Seoul. Meanwhile, its new JV in Australia will focus on constructing high-quality co-working centres and providing strategic and comprehensive solutions to occupiers.