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As Hong Kong eases Covid-19 curbs, co-working operators hunt for more acquisitions
- The average occupancy rate for flexible office spaces currently stands at a stabilised rate of more than 80 per cent
- There is strong demand for flexible work spaces and the sector will perform well in 2022: Colliers Asia
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More mergers and acquisitions (M&As) were in store for the co-working sector in Hong Kong amid rising demand for flexible offices, analysts said.
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As more firms implement a return to offices or hybrid work arrangements, flexible co-working spaces might prove to be a better option for them than traditional offices.
“We have already seen a lot of activity around M&As and investment into the sector, and expect this to continue,” said Jonathan Wright, director of flexible workspace consulting at Colliers Asia. The average occupancy rate for flexible office spaces currently stands at a stabilised rate of more than 80 per cent, he said.
Hong Kong is easing its strictest Covid-19 restrictions yet on April 1, but after two years of on-and-off work from home and flexible working arrangements for staff, firms in the city are expected to rethink their real estate needs in the world’s most expensive property market.
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And the city’s co-working operators have been busy setting the stage to benefit from this shift in strategy. Hysan Development and flexible office giant IWG, for instance, formed a joint venture for the Greater Bay Area development zone in August last year. Hong Kong-based flexible workspace provider The Executive Centre was acquired by private-equity firm KKR and Tiga Investments in June last year.
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