KUALA LUMPUR, MALAYSIA 6 January 2023 – 5X Capital, a private equity fund with a diverse portfolio of companies including BFM Radio and Vida has acquired a stake in Colony Coworking Space.
Colony Coworking Space, which currently operates 12 locations in Kuala Lumpur between its namesake brand and its mass-market brand Jerry, has a total footprint of 170,000 square feet in Kuala Lumpur. The group’s revenue grew 74% in 2022 and EBITDA grew by 265% year-on-year to an all-time high.
With this strategic investment, 5X Capital is looking to capitalise on the growing Flexible Workspace Market in Malaysia by investing in one of the largest Coworking operators in the country.
“We feel privileged to be invested into Colony, a team whose offering we love, has great execution and business acumen. This is an incredible opportunity and we will meaningfully support them for greater growth,” said a representative of 5X Capital. “Their success in being one of the few profitable coworking operators in the industry is a testament to the company’s strong brand and execution”.
“Colony has always been about sustainable growth: Growing while maintaining a minimum of being EBITDA neutral so we don’t burn cash. With that we find 5X Capital as partners that are aligned with our goal of sustainable growth,” said Timothy Tiah, CEO of Colony Coworking Space. “Their experience and resources will be invaluable as we continue to expand and meet the growing demand for coworking spaces in the region.”
Colony earlier this month also announced a new deal with property developer Sunsuria Berhad to open a new Colony in Sunsuria Forum at Setia Alam.