The Flexi Group, which operates flexible workspaces across the Asia-Pacific, announced on Tuesday that it is set to merge The Hive, Common Ground and The Cluster and bring them under one umbrella.
With this, The Flexi Group’s portfolio of co-working spaces will span across 45 locations in 12 cities and nine countries including Malaysia, the Philippines, Singapore, Thailand, Vietnam, Hong Kong, Japan and Australia.
The latest merger exercise is part of a series of planned consolidation activities done in preparation for an IPO, according to a statement by The Flexi Group on Tuesday.
The group believes that going public will allow it to consolidate the region’s flexible workspace industry through M&As and thereby lead the future of work trend in Asia-Pacific and abroad.
Founded in 2022, The Flexi Group is looking to headquarter its operations in Kuala Lumpur, Malaysia.
Its asset-lite approach sees the group partnering with landlords on joint ventures instead of taking on large and unwieldy rental agreements. Their landlord partners include Chinachem Group in Hong Kong, Petronas in Malaysia, Central Group in Thailand, Ortigas in the Philippines and Hirsch and Faigen in Australia.
“The [landlords] work with us to help engage the tenants in their buildings, offering them access to best-in-class events, flexible work solutions and bookable meeting and event spaces,” said Chris Edwards, CEO of The Flexi Group.
He added that “asset owners can also unlock revenue potential as our partners see increased returns of up to 30% vs a traditional lease structure”.
Going forward, the group is looking to expand its landlord partners as well as the operations of The Hive, Common Ground, and The Cluster.
Set up in 2012, The Hive offers a boutique workspace network in 21 locations across seven countries. Its approach is to help members build deep, lasting connections, regardless of their industry, role or location.
Similarly, Common Ground has captured a space in providing premium workspaces across Malaysia, Thailand, and the Philippines, since its launch in 2017.
Meanwhile, The Cluster, which was established in 2010, has become one of the pioneers in hospitality-driven work and event spaces in Australia.
The label is located in commercial and business city centres, and has created a name for itself in the flexible, spacious and luxurious workplaces sector.
The Flexi Group’s latest merger comes amid increased interest in co-working spaces across the world as more companies offer their employees such a working arrangement.
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