WOTSO co working space
One of WOTSO’s co-working office space in Chermside, Queensland. Image – WOTSO.
  • Flexible office space provider WOTSO operates 16 sites in 6 states and territories
  • Occupancy is running at 71%, and half yearly revenues were $7.5 million
  • The company will aim to list on the ASX after separating from BlackWall Property Trust

Flexible co-working and office space provider WOTSO will be de-coupled from its parent company BlackWall Property Trust (ASX: BWR) and re-list on the ASX in its own right shortly (under the ticker ‘WOT’).

WOTSO obtained shareholder support for this move at the end of January and expects the implementation to happen next week.

No doubt it’s been a tough year for anyone involved in the business of providing office space, flexible or otherwise.

The international travails of global co-working company WeWork have been well covered in the media, and will shortly become a documentary on the streaming site Hulu (“WeWork: Or The Making and Breaking of a $47 Billion Unicorn”).

Various WeWork sites in Australia have been shuttered for good, despite reports of the company taking out years of leases on the properties. Majority-owner SoftBank has since valued WeWork down to US$2.9 billion, controversial CEO Adam Neumann left over a year ago and in the bank’s latest earnings report WeWork barely warrants a mention.

Meanwhile, WOTSO has been running 7 sites in NSW, 4 in Queensland, 3 in the ACT and one each in Tasmania and South Australia. Occupancy is running at 71%.

According to a report filed with the ASX this week, WOTSO has benefitted from a “strong recovery” since the middle of 2020. As of February 2021, annualised revenue has increased to $16.5 million, representing an 85% increase since June 2020.

‘Annualised Revenue’ is defined as the amount of revenue the customer base would produce over the course of a year if there were no changes to it – no churn, no growth, no price changes.

WOTSO annualised revenue
WOTSO annualised revenue. Source – WOTSO.

In the six months to December 2020, the company made a $2.04 million loss on revenues of $7.58 million. So each site is turning over around $475,000 on average.

Last month, the company closed its site in Kuala Lumpur, Malaysia; however, the company is now on the lookout for “expansion sites”.

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