JV to Invest $1B in European Coliving Expansion
- Dec 13, 2018
Medici Living Group—the parent company of coliving brand Quarters—and Corestate Capital Holding S.A., have entered into a joint agreement to invest $1.1 billion of equity and debt into the coliving market over the next three to five years, developing 35 projects totaling 6,000 units in Europe. This marks the largest coliving investment worldwide.
Medici plans to target the European markets of Germany, Netherlands, Switzerland, Poland, U.K., Austria and Spain, focusing on properties with an investment volume ranging from around $20 million to $70 million. The 35 developments will operate under the Quarters brand, targeting young professionals. These will join the company’s portfolio, which also includes properties in New York and Chicago.
“For young people, there is a huge affordability gap in housing, and coliving can help close that gap. Our units are, on average, 10 to 20 percent more affordable than a studio apartment in the same neighborhood,” Gunther Schmidt, founder & CEO of Quarters and Medici Living Group, told Multi-Housing News. “Beyond affordability, we’ve also streamlined the rental process. There is no broker, furniture hunt, or WiFi bills; all you have to do is move in and you’re instantly immersed into a fully-amenitized home and community of like-minded individuals.”
Corestate will handle investment, financing, project development and asset and fund management. Medici will handle the conceptual design and operation of the assets. Within this program, the firm will increase its portfolio from 1,800 to more than 7,800 coliving rooms.
“Coliving has enormous potential, even more than coworking because the residential real estate market is twice the size of the commercial market. Like WeWork and the coworking space, growth within the market depends on who can raise the most funds in the shortest amount of time,” added Schmidt. “The $1.1 billion European equity raise is unprecedented in the coliving space, positioning us not only as the largest player worldwide, but also for future raises in the U.S. and other markets.”
Images courtesy of Medici Living Group