The competition in co-working hubs is hotting up not only in Australia, but around the world and We Work is a major disruptor.
I also expect SRV to announce a one off hit to carried forward tax losses in the H1 FY'18 results. This is due to President Trumps tax rate reduction.
For this reason I exited SRV today.
GLTAH
AFR article Co-working hub start-up not afraid of WeWork
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CreativeCube.Co co-founder Tobi Skovron in front of the site of their new co-working hub in Hawthorn. Arsineh Houspian
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by Larry Schlesinger
The co-founder of Melbourne's latest co-working space provider says he's not worried about US giant WeWork or the myriad other companies that have flooded the fast-expanding sector.
"I'm not interested in the competition. We're 180 degrees different," CreativeCubes.co director Tobi Skovron tells The Australian Financial Review from the former Xerox "X Building" in Cremorne on the city fringe, where it opened its first co-working hub in August last year.
"We are community-focused, we do everything we can to help our clients grow. We want to be regarded as the best," says Mr Skovron.
While this may sound a bit idealistic or even wishful, CreativeCubes.co has already secured a major coup in signing up food delivery giant Uber Eats as a client. "They've just committed to another six months," says Mr Skovron.
Other users include virtual law firm Legalite, The Essentials, a start-up which supplies toiletry packs to Airbnb hosts, Toothrush, which has patented a self-cleaning mouthguard, and a sports marketing business.
Next month CreativeCubes.co's will open its second hub in Building C at 600 Glenferrie Road in Hawthorn in Melbourne's Eastern Suburbs after striking a leasing deal with landlord the Banco Group. It's a block away from the Swinburne University of Technology campus.
"We've already formed a relationship with Swinburne University," Mr Skovron says. Ambitious plans
CreativeCubes plans to roll out six hubs in the next 18 months and has ambitions to operate 18 within the next five years in Australia and New Zealand covering over 30,000 square metres of office space.
"We're looking at places like Collingwood and Windsor in Melbourne and Redfern and Bondi Junction in Sydney," he says. Landlords are coming to us. They say, 'we have a building, we want to work with you'.
"The key thing for us is a location close to public transport, where there is population density. We like cool, obscure and quirky spaces."
The 37-year-old Mr Skovron drew heavily on his own experience as a successful entrepreneur – he founded portable pet loo business Pup Pee Solution – to create what he believes is a genuine creative, community-orientated co-working space with a focus on "six-star service at a three-star price".
"We want to deliver a service and product that was not there when I was an entrepreneur and help other like-minded professionals," he says. "We want to work with good people, who want to do good. We are under no pressure to take money from anyone."
Having dealt with the pressures of launching his own start-up business, the focus at CreativeCubes.co is on service and fostering mental wellness among members. This idea is best encapsulated in the hub's hotel-like concierge desk, emblazoned with a bright yellow neon sign inscribed with the words 'Happiness Team" below.
Here, users can book everything from a strategy session with a business consultants to a massage or even advice from a nutrition expert. Or just order a coffee or a bite to eat. Event space
There's also a large event space and bar which can be hired through another CreativeCubes.co business MicDrop for product launches, off-site meetings and keynote presentations – or just to watch the latest NBA basketball game, says Mr Skovron, who spent 13 years immersed in the Los Angeles start-up scene and is an avid fan of the sport.
While the idea of a "Happiness Team" may have some competitors rolling their eyes, differentiation will become increasingly important for those competing with $US20 billion giant WeWork, Australia's largest co-working space provider, and established local operators like Hub Australia and WOTSO, run by listed property platform BlackWall.
A report by Knight Frank found that co-working hubs now occupy 184 spaces totalling 95,000 square metres in Melbourne and are growing rapidly.
Mr Skovron says is CreativeCubes.co is not just for start-ups, but aimed at the large corporates and financial services groups looking for flexible office space, great service and "lightning-fast WiFi".
"Gone are the days when companies take out large premises – with technology and agile working if you are connected to the net and have a phone, you can work," says Mr Skovron.
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