December 14, 2018 Comments Off on The WeWork of Co-Living? Views: 1229 National News

The WeWork of Co-Living?

The co-living sector has notched its first 10-figure investment. Berlin-based Medici Living Group, the parent company of co-living brand Quarters, has forged a €1-billion (approximately US$1.13-billion) agreement with Corestate Capital Holding to develop 35 new Quarters assets across Europe over the next three to five years.

The 6,000-unit expansion plan will put Medici into new markets, as well as grow its footprint in existing ones. While the rollout will more than quadruple Medici’s current unit count of 1,800 across the student housing and co-living sectors, it also portends an even larger-scale growth strategy.

“This investment is a breakthrough for the co-living sector worldwide,” said Gunther Schmidt, Medici Living’s founder and CEO. “The co-living sector has enormous potential—even greater than the co-working sector, and our European investment program presents a playbook for our growth plans in the U.S. and other markets. We fully intend to be the WeWork of co-living.”

The brand is aimed squarely at Millennials, both in Europe and in the U.S., where Medici operates two Quarters facilities in New York and one in Chicago. At Corestate, CEO Michael Buetter cited urbanization, young people’s desire for community, and the opportunity to live and work in different cities as drivers of demand for communal residential space.

“Investment in the co-living segment is characterized by the low-risk profile of residential property paired, however, with higher yield expectations,” he said. “Investors will profit from Corestate’s Europe-wide expertise in deal sourcing and the operative know-how of Medici Living.”

In addition to Medici’s current European target markets of Germany, the UK and the Netherlands, the new investment program will focus on Austria, Switzerland, Spain, and Poland. The focus will be on cities with populations greater than 500,000, and properties, both existing and newly-built, with an investment volume of approximately US$22 million to US$65 million.

Early 2019 will see an announcement of Medici’s first large-scale equity raise in the U.S., according to a company spokesman. That will be followed by a gradual rollout in U.S. markets beyond the current New York and Chicago facilities.

Read more at BusinessWire

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