Sino-Ocean Capital, the investment arm of real estate state-owned enterprise Sino-Ocean Group Holding, has led a RMB500 million (US$78 million) series B+ round in Chinese co-working space operator Nashwork.
Huarong Rongde Asset Management, a joint venture co-established by China Huarong Asset Management Corporation, Deutsche Bank AG, Clearwater Capital and other international financial institutions, also participated in the round, according to Nashwork’s announcement on its official WeChat account.
Founded in 2013, Beijing-based Nashwork has operations in five cities covering more than 800,000 square meters and has served more than 11,000 companies. It claims to have an occupancy rate rate of 99%.
The company raised a RMB200 million (US$31.3 million) series B round led by PGA Investments in 2017 and raised a RMB30 million (US$4.7 million) series A round co-led by Beijing Kunlun Tech Co., and Zhong Capital Holding Group in 2013.
Consolidation in China’s co-working space sector is expected to accelerate. This year alone, Ucommune, formerly known as Urwork, has completed four acquisitions, including Shanghai-based Workingdom, Beijing-based Woo Space and New Space, and Shenzhen-based Wedo.
In April, American co-working giant WeWork acquired naked Hub, after naked Hub acquired Australia’s Gravity in January.