MANILA, Philippines — Gotianun-led Filinvest Land Inc. has partnered with KMC Community Inc. (KMC) to establish and operate co-working facilities.
The two parties entered into a joint venture agreement with an initial investment of P100 million. The joint venture company will “establish and operate a business for the development, management, operation, and maintenance of flexible workspace facilities offering private serviced office seats and co-working seats in commercial buildings.”
With the joint venture agreement, FLI can leverage the expertise and experience of KMC in the flexible co-working space industry.
By partnering with a company with a strong branding, FLI will be able to increase its brand awareness in the co-working space industry and be able to reach new markets and expand its operations to multiple locations.
In a disclosure yesterday, FLI said the parties agreed to establish and operate a “business for the development, management, operation, and maintenance of flexible workspace facilities offering private serviced office seats and co-working seats in commercial buildings.”
Co-working spaces are a rapidly growing industry, driven by a number of factors, including the rise of remote work, increasing popularity for multiple office venues, and the growing demand for a more conducive work environment.
Employers are also shifting from traditional office space due to the incentives allowed by the Board of Investments and the Philippine Economic Zone Authority to its locators.
Prior to execution of the joint venture agreement, FLI incorporated a new company, which shall be the entity that will be utilized by the parties in implementing the agreement.
Under the joint venture agreement, FLI and KMC shall subscribe to 70 percent and 30 percent, respectively of the authorized capital stock of the joint venture company.
FLI, which is the property and development arm of Filinvest Development Corp., earlier revealed plans to capture government agencies for its office business, as well as come up with co-working spaces for smaller companies such as small and medium enterprises.