Cornerstone Partners Group has acquired a 10 per cent stake in luxurious co-working space Colony. The deal values the company, started by prominent entrepreneur Timothy Tiah, between USD15-USD20 million, representing a four-times return for its early investors.
The eight-month old company has raised a total of USD5 million to date and is looking to open more locations in Kuala Lumpur this year after having its first location at Jalan Kia Peng turn profitable in its first three months.
Cornerstone Partners Group which owns hotel assets around Asia including the DoubleTree Resort by Hilton in Penang, the Kimpton in Taipei and the upcoming citizenM in KL City Centre, sees potential synergies with Colony and the hospitality industry. One such possibility is building a Colony in each hotel location to replace the traditionally low-yield business centre hotels have.
According to Knight Frank Malaysia’s 2017 Round-up and 2018 Outlook, demand for serviced offices and co-working spaces are projected to grow across an eclectic mix of industries and professions as they search for contemporary work environments. While the trend is popular among small-medium enterprises, more corporate blue-chip companies have also started to provide flexible working locations. Colony’s clients include Dell, Petronas, Maybank, Microsoft and more.
Colony officially launched in late July 2017 at its KLCC location on Jalan Kia Peng. Its membership options include reserved desks, hot desks, private suites, and prepaid passes along with exclusive amenities such as nap rooms, massage room, rooftop gym/swimming pool access, and in-house Espressolab coffee. The company is determined to further establish presence in the co-working scene by executing an array of expansion plans, starting with the opening of its second location at KL Eco City in June this year. Aside from supporting new development plans and renovation costs, Colony intends to capitalise on the funding raised to expand more locations and invest in talent.
“Our investment in Colony signifies our confidence in Timothy’s leadership and Colony’s potential. We were amazed at how Colony was able to take the co-working space model that was largely unprofitable to one that is as lucrative as Colony is today,” says Jason Chong, CEO and co-founder of Cornerstone Partners Group.
“I’m honoured to have Cornerstone Partners Group as an investor and valued partner in Colony to help us take this to the next level. We will continue to invest in our vision of creating the Ritz Carlton of the workspace,” says Tiah.
