French GP exits Singapore's JustCo with 8x return

The result is based on an initial investment of S$4 million from Tikehau’s balance sheet in 2015. JustCo is said to have raised some $86 million since its inception in 2011 from the likes of GIC Private, Pinetree Capital, and Singapore real estate manager Frasers Property. AVCJ understands that buyers in the Tikehau divestment include parent entity JustGroup. 

The latest transaction coincides with Frasers providing an additional $12.4 million commitment to the company via a VC unit. According to a filing, the investment gives Frasers a 22.2% stake in JustCo. Frasers and GIC teamed up with the start-up in 2018 to establish a $117 million platform for investments in technology-enabled collaborative workspaces across Asia Pacific.

JustCo markets itself as Asia’s leading premium flexible workspace provider to freelancers, entrepreneurs, start-ups, and small to large enterprises. Initially focused on Southeast Asia, it now operates 40 locations across the broader region, including bases Australia, China, Japan, Korea, and Taiwan. The footprint grew at a rate of 63% a year during Tikehau’s holding period.

The expansion has been part of a scramble to fend off intense global and regional competition that has also included moves such as a proposed merger with Naked Hub, a Chinese counterpart backed by Gaw Capital Partners. That merger was called off in 2018, however, when Naked Hub was acquired by US-based sector leader WeWork in a deal said to be worth about $400 million.

Investor interest in coworking spaces has led to rapid growth of the segment and skepticism about valuations. This was most dramatically illustrated last year when SoftBank Vision Fund and SoftBank Group confirmed a combined $7.7 billion of write-downs for their positions in WeWork. The US company’s valuation tumbled from $47 billion to $8 billion between August and October 2019 due to concerns around operational overextension.

Tikehau claims to have EUR4 billion ($4.4 billion) in private equity assets under management, including EUR2.1 billion in direct investments. The firm typically deploys in a range of EUR10-70 million alongside management teams, entrepreneurs and founding families, which remain majority shareholders. Its Asia presence includes offices in Singapore, Japan, and Korea. Recent activity includes a first close on a Singapore-focused healthcare VC fund under the name of TKS1.

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• Topics
• Southeast Asia
• Real estate
• Exits
• Trade sale
• Buyback
• Singapore