As $20 billion co-working startup WeWork expands into Southeast Asia, the company behind the world’s biggest serviced office operator is ramping up its flexible workplace presence in Singapore.
Spaces, the co-working arm of European flexible office giant IWG, which also owns the Regus brand, has leased over 35,000 square feet (3,252 square metres) of office space in the Orchard Road area for its second centre in the city.
Singapore developer Perennial Real Estate announced on Wednesday that it is leasing the third and 13th floors of its office and retail project TripleOne Somerset to the flexible office operator, a filing to the Singapore Stock Exchange shows. Expected to open in mid-2019, Spaces’ new space will be the co-working company’s flagship centre in Singapore, adding to its existing centre on Beach Road near City Hall.
Spaces Expands Singapore Presence
“Singapore is an international hub for businesses and is one of the most vibrant markets in the world. It is built on the energy of community – interesting people doing exciting things; a perfect fit with our culture of expanding networks and connecting like-minded members to link up and share ideas,” said Martijn Roordink, co-founder of Spaces in the statement. “With a thriving cultural and business scene, it is no surprise that we are expanding our presence at prime business locations, with the opening of another Spaces site at TripleOne Somerset.”
The new Spaces centre at TripleOne Somerset will house co-working spaces, meeting rooms, private offices, conferencing facilities and event spaces.
TripleOne Somerset, which occupies a 109,420 square foot site in Singapore’s best-known shopping district, comprises 15 storeys of office space above a two-storey retail podium. Located at 111 Somerset Road one block off of Orchard Road, the commercial building is right next to the Somerset MRT Station.
The 17-storey development is currently going through a S$120 million ($90 million) renovation after Hong Kong’s Shun Tak Holdings bought a S$305 million stake in the commercial complex from Perennial in early 2017. The enhancement work, which includes increasing the building’s retail offerings and adding medical suites, is expected to be complete by 2019.
Global Office Operators Fight for SE Asia Market
While Spaces is adding to its Singapore footprint, global flexible office giant WeWork is also ramping up its presence in the region. The $20 billion US startup recently announced that it would open two co-working centres in Jakarta by the third quarter of the year and would establish operations in Bangkok, Kuala Lumpur and Manila later this year.
With a centre in Singapore and another in Bangkok already under operation, Spaces plans to add a pair of centres additional centres this year in Manila and Bangkok. Under the Regus and Spaces brands, IWG now operates more than 2,300 business centres in 106 countries.
Spaces was founded in the Netherlands in 2008 and was acquired by IWG, then known as Regus, in 2015. Spaces has 94 operating centres worldwide with the majority in Europe and the United States, its corporate website shows.