DAVAO CITY — Homegrown Damosa Land Inc. (DLI) has inked a franchise agreement with International Workplace Group Co. (IWG) for the establishment of eight co-working centers in Mindanao over the next five years.
“The franchise program is part of our global strategy,” Matthew James Kenley, IWG-Asia Pacific head of partnership growth, said during the signing ceremony on Jan. 24.
The franchising deal with DLI is its second in the country, with the first located in Cebu.
IWG, formerly Regus, has been operating two Regus centers in Davao City. The first one, located at DLI’s Topaz Tower in Davao City, was opened in 2016 and considered the biggest in the country at 1,600 square meters (sq.m.). Another Regus center can be found in Felcris Centrale since 2018.
IWG — whose brands include Regus, Spaces, HQ and Signature by Regus — currently has 28 centers in the Philippines. Mr. Kenley said they target to increase the number of centers to 40 in five years.
DLI First Vice President Ricardo F. Lagdameo, for his part, said the new venture will expand their footprint in the real estate sector and attract new investors to their spaces.
“This one is a perfect complement to our existing office leasing business, and one of the directions of Damosa Land is to really grow our office portfolio,” said Mr. Lagdameo.
DLI, the real estate arm of the Floirendo-owned Anflo Management and Investment Corp., has about 15,000 sq.m. in leasable space and this will increase to about 40,000 sq.m. when its Diamond Tower starts operating in April.
The new 15-floor tower will be the location of the company’s first franchised IWG center. The IWG center will have a 1,600-sq.m. floor area and is expected to open before the end of October.
Mr. Lagdameo said they are confident that demand for workspaces “will continue to grow in the next couple of years.”
Two IWG centers are planned to be set up at DLI’s Valley High commercial complex in General Santos City, and in Cagayan de Oro City where the company has partnered with Ayala Land Inc. for the Centrio Mall.
Mr. Lagdameo said they are open to establishing the other shared workspaces in office buildings not owned by DLI.
“Any office building in the future will really have to have some kind of a (shared) workspace,” he said.
Lars Wittig, IWG country manager for the Philippines, Thailand, Vietnam, Cambodia and South Korea, said these workspaces have become a “good launch platform for local entrepreneurs,” noting that they have 600 members in the city.
“We have enabled them to much faster growth,” Mr. Wittig said. — Carmelito Q. Francisco