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Hong Kong property
Business

Hysan Development, IWG form flexible office joint venture as Hong Kong landlord eyes Greater Bay Area market

  • The joint venture will acquire and operate IWG’s 32 existing locations and the Regus, Spaces and Signature brands across the Greater Bay Area
  • Hong Kong’s office rents have declined by a quarter from two years ago as demand for office space has fallen because of remote working arrangements

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IWG's share-office space at Hysan Place in Causeway Bay. Photo: Handout
Sandy Li
Hysan Development is expanding into the shared-office market in the Greater Bay Area through a joint venture with IWG, the world’s largest flexible workspace operator, as it seeks to cash in on the growing trend of remote working arrangements by companies who are looking to contain costs.
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The joint venture will acquire and operate IWG’s 32 existing locations and brands across the Greater Bay Area, Hysan said on Monday, without disclosing its investment in the venture.

Sixteen of these shared offices are in Hong Kong, which are operated under three brands – Regus, Spaces and Signature.

“The workspace ecosystem is fast evolving to better meet end users’ needs and expectations, and flexible workspace will play an important part,” said Ricky Lui, chief operating officer of Hysan Development. “The joint venture reflects our confidence in the economic growth of the Greater Bay Area.”
IWG’s Signature brand last year took over 32,000 sq ft of space vacated by WeWork at Hysan Place. Photo: Dickson Lee
IWG’s Signature brand last year took over 32,000 sq ft of space vacated by WeWork at Hysan Place. Photo: Dickson Lee
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Hysan has market value of HK$30.8 billion (US$3.95 billion) and ranks among the biggest office landlords in Causeway Bay, the city’s prime commercial district.

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