Developers, funds target China demand for co-working space amid startup boom

Hong Kong

REAL estate developers and financial investors are capitalising on fast-rising demand for leasing of "co-working" spaces in China, as Beijing encourages startups and small businesses in a bid to offset slowing growth at traditional industries.

Developers, including China Vanke, Soho China and Singapore's CapitaLand, are renting out property space that hordes of self-employed persons or small-sized companies then share, company executives said. The lease deals with the startups are usually short term and are done mainly through specialised operators.

Financial investors are also jumping on the bandwagon, amid a growing belief that shared spaces deliver greater synergies by driving up innovation and productivity. Citic Capital, whose sev…