Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

URWork-New Space Merger to Create RMB 9B Global Co-Working Player

2017/05/03 by Mingtiandi Team Leave a Comment

URWork boss and former Vanke exec Mao Daqing will serve as chairman of the merged entity

One of China’s top shared office players, URWork, has inked an agreement with rival New Space for a strategic merger, according to a recent joint announcement by the two mainland flexible office providers.

The market valuation of the combined companies is said to reach RMB 9 billion ($1.31 billion) and the companies together would immediately have a network of nearly 100 co-working centres across mainland China.

The two companies announced the merger at the same time that they noted the growing presence of US co-working giant WeWork in China’s flexible office market. Following the deal, the combined URWork-New Space entity says it plans to expand globally, taking on WeWork in Singapore and London, as well in the New York home of its US rival.

Aiming for 35 Cities Worldwide

While both URWork and New Space are mainland-only entities so far, the merged company hopes to take its co-working offering global with plans to reach 150 venues in 35 cities within the next three years, including centrex in New York, London, Singapore and Taiwan. The two companies say their expanded network is expected to cover at least 50 million square metres of space within that period.

Under the terms of the strategic agreement, URWork boss Mao Daqing is tipped to serve as chairman of the joint venture, while Mao and New Space chief Wang Shengjiang will serve as co-CEO’s of the as yet unnamed new entity. According to the joint statement, whilst resources will be shared under the strategic tie-up, each company will maintain their independent status with team structures unchanged.

Capital Injection Critical

In January, URWork announced the completion of 400 million RMB series B at a valuation of RMB 7 billion ($1.02 billion), the largest capital injection into the firm thus far. As of April, URWork has reportedly amassed a total venture fundraising of over RMB 1.2 billion  ($175 million), according to TechNode. New Space was said to be valued at around RMB 2 billion before the agreement was signed.

The merger would combine New Space’s 30 locations in 13 cities with URWork’s chain of 66 centres in 18 mainland cities. Both companies were established in 2015, with Mao founding his venture after serving as vice president of Chinese real estate developer Vanke. Mao’s startup was initially backed by venture capital heavyweights including Sequoia Capital ZhenFund and Innovation Works. In later rounds, Tianhong Asset Management, a fund management affiliate of Alibaba’s Ant Financial, Junfa Group, Shanghai Chuanghehui, Tianming Shuangchuang Technology and Dahong Group have added to the company’s investor roster.

Survival of the Mergers

URWork runs 66 locations in 18 cities across China

The URWork-New Space merger creates one of China’s largest co-working networks as companies jockey for market share. A report from international property consultancy JLL from January this year shows that between Beijing and Shanghai, more than 500 co-working sites have been set up since July 2015.

URWork itself has previously stated that it views “solid strategic partnerships” as critical to its success, and in December 2016 entered into a partnership with Singapore’s biggest developer, CapitaLand, to set up co-working centres in its mainland malls.

URWork’s interest in bolstering its market position was underlined in a separate announcement on its website, released the same day as the merger agreement, which traced the genesis of WeWork, noted the US company’s $17 billion valuation, and tracked the expansion of the US co-working giant’s presence in China.

After launching its version mainland centre in Shanghai in 2016, WeWork now has eight locations in China, including five in Shanghai and three in Beijing. Signaling WeWork’s growing ambitions, the company has sought to fill 55 China based posts over the last three months, according to Linkedin Jobs.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Flexible Office Tagged With: Co-working, New Space, UrWork, weekly-sp, WeWork

https://vimeo.com/722412109

Leave a Reply

Your email address will not be published. Required fields are marked *

Asia Proptech Report 2022 (Special Report)

Get Mingtiandi Delivered

REIT forum 2022 Web banner

MTD TV

MTD TV Emerging classes in residential screenshot
Student Housing, Senior Living Offer Amped Yields for Multi-Family Investors: MTD TV
Proptech Forum: Logistics Tech
Logistics Experts Reveal How Tech Is Reshaping Asia’s Distribution Centres

More MTD TV Videos>>

People in the News

Lu Yi Shimao
Asia Real Estate People in the News 2022-06-27
Wu Jianxin Kaisa
Asia Real Estate People in the News 2022-06-20
Graham Mackie Tishman
Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India
Antoine Mesnage
AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

More Industry Professionals>>

People in the News

Asia Real Estate People in the News 2022-06-27

Lu Yi Shimao

A senior appointment by one of China’s crew of defaulting privately-controlled developers leads this week’s roundup of … Read More>>

Asia Real Estate People in the News 2022-06-20

Wu Jianxin Kaisa

Top level executive changes at a pair of major mainland real estate companies lead this week’s round-up of personnel … Read More>>

Tishman Speyer Appoints Graham Mackie to Lead APAC Push Beyond China and India

Graham Mackie Tishman

US developer Tishman Speyer has hired industry veteran Graham Mackie as a managing director to lead the firm’s Asia … Read More>>

AXA IM Alts Appoints Antoine Mesnage as Head of Australia, Promotes 2 Other Execs

Antoine Mesnage

AXA IM Alts is shaking up its leadership team Down Under with the appointment of Antoine Mesnage as the French firm’s … Read More>>

More Industry Professionals>>

Latest Stories

Lin Ho Man
Evergrande to ‘Vigorously’ Fight Winding-Up Petition Filed by Disgruntled Investor
Sunac Sun Hongbin
Sunac Meets Investors to Seek Second Extension on $600M in Domestic Bonds
Actis to Invest $700M in India Life Science Assets and More Asia Real Estate Headlines

Sponsored Features

Should Proptech Give Us Sleepless Nights?
Hong Kong’s Evolving Commercial Real Estate Landscape
Opportunities in the Greater Bay Area

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.

"*" indicates required fields

Terms of Use and Privacy Policy*