Filinvest, KMC in P100-M coworking space venture

MANILA -Gotianun-led property giant Filinvest Land Inc. and KMC Community Inc. have established a P100-million joint venture to construct and operate coworking spaces, whose demand has been supported by the rise of remote work setup.

On Tuesday, the listed company said their agreement for the development, management, operation and maintenance of flexible workspace facilities was recently inked.

Such workspace is aimed to offer private serviced office seats and coworking seats to clients.

Under the joint venture deal, Filinvest is the majority owner with 70-percent stake. The remaining 30 percent is held by KMC.

The profit-sharing of the new company will be based on the equity interest participation.

“Except for registration with the Bureau of Internal Revenue and in the local government where it will operate, there are no other known regulatory requirements for the joint venture,” the listed company noted.

The joint venture has emerged amid the “rapidly growing industry” of coworking spaces, Filinvest said.

“This growth is being driven by a number of factors, including the rise of remote work, increasing popularity for multiple office venues, and the growing demand for more conducive work environment,” it explained.

The Gotianun-led company said it could benefit from the expertise of KMC in the coworking space sector via their partnership.

In the first quarter, Filinvest reported its net income grew by 9 percent to P741 million as total consolidated revenues improved by 9 percent to P4.69 billion on the back of better performance in all its business segments.

Residential revenues for the period climbed by 4 percent to P2.79 billion as construction of housing and medium-rise condominium projects was ramped up.

Office segment revenues inched up 0.65 percent to P1.16 billion with more leasing deals closed during the first quarter.

Mall business, meanwhile, soared by 86 percent to P558 million amid the rise of mall occupancy and foot traffic.

The company plans to roll out P16-billion worth of residential projects and to complete eight office projects this year.

“As we remain focused on meeting our customers’ needs, we are also excited about the prospect of further expanding our business this year,” Filinvest president and CEO Tristan Las Marias said earlier.

—Tyrone Jasper C. Piad INQ