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Thursday, March 28, 2024

MVP Global Eyes Coworking Space Market in PH

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Manila, Philippines –MVP Global Infrastructure Group (also known as MVP Global), a private investment firm that covers Malaysia, Vietnam and Philippines opportunities seals a new joint venture agreement with Common Ground, the largest coworking operator in Malaysia, to build coworking spaces in Metro Manila, initially.

Coworking and flexible space have quickly become key components of broader commercial real estate and portfolio strategyAccording to a recent CBRE survey of 200 corporate real estate decision makers, 46% have now included coworking to their workplace strategy. There is a large addressable market and unmet demand for flexible workspaces with elements of community and networking.

Enrique Gonzalez of MVP Global sees much opportunity in the partnership to penetrate thecommunal office market. "Common Ground's entry into the Philippines is timely as we see pent up demand for coworking space offerings which provide a superior value proposition to tradition office space rentals. With Common Ground's entry into the Philippines, we also provide our tenants access to a regional eco-system.

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We are equally excited with our partnership with the founders of Common Ground who share our enthusiasm and successful track record across many Internet and tech-related businesses. We believe the success of entrepreneurs in SE Asia relies on their ability to forge partnerships with like-minded entrepreneurs in other markets. The regionalization of these relationships is essential to scaling across SE Asia."

Common Ground co-founder Juhn Teo mirrors the same observation in the new venture. “We believe the shifting patterns of the millennial workforce, technology and thrivingmultinational sector support this rapidly growing demand. A recent Colliers Flexible Office Report forecasted that flexible office space for SE Asia will grow from 2% of current commercial real estate inventory to 30% by 2030. So, I am confident that there is sufficient demand and this is vindicated by the fast take up rate at our first venue in the Philippines.

Common Ground’s community is very diverse and an eclectic mix of industries and professions. We pride ourselves on catering to a broad spectrum of industries and backgrounds. The benefits of this diversity are that members can provide different services, do business, offer advice with each other and socialize with people from different knowledge bases.”

The partnership is Common Group’sexpansion of its initial portfolio of four working spaces in Malaysia. Top corporations such as BCG, Uber, United Nations and AWSare among its tenants, to name a few.

Common Ground co-founder Erman Akinci adds, “We were happily surprised by the tremendous success of our first coworking space and even more astounded by the success of succeeding coworking spaces we built in Malaysia.It’s a validation that we accurately tapped the pulse of our target market and it’s always nice to be proven right. This is something we would like to replicate in Philippines.

The level of confidence in our partnership with MVP Global is extremely high and we see a similar potential in the Philippine market that we project opening 15 locations within the next 2-3 years.”

MVP Global represents a group of market leading businesses across South East Asia with over US$1 Billion in capital. Its interests are in the areas of infrastructure investment and cross-border activities. In 2016, it signed an MOU withChina Railway Engineering Corp. (CREC) to bid for $2.5 billion worth of infrastructure investments, whether via public-private partnership bids or unsolicited bids.

Common Ground was co-founded by a group of entrepreneurs who saw the effectiveness of communal workspaces and the business opportunity they presented. Catcha has invested into Common Ground, and the coworking development company secured its first anchor tenant in Entrepreneur’s Organization (EO), a global entrepreneur network with a Malaysian chapter that supports 164 members across the country. 

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