Flipco reached an agreement with israeli fund Argis to develop its first project. The fund will invest 50 million euro in shared houses in Spain and the Spanish company will manage the asset, as explained by Damián Harburguer, Flipco’s co-founder and CEO.
This is the first deal concluded by the company, which is seeking investors, both funds and family offices, which will acquire dwellings while operating them. The company, which was established last October with the founders’ own capital, carried out a test at the end of the year with 16 rooms which registered a 90% occupancy rate.
Of the 50 million euro the Israeli fund will invest, 20 million euro will be allocated to the opening of 200 rooms in Madrid’s Tetuán neighbourhood, which are currently being built or refurbished. Besides the rooms, the centre will also have co-working and a gym for its tenants.
Harburguer and Gabriel Honoré, cofounder and technology director at the company, are the society’s majority shareholders, but Argis has also entered as a shareholder of the company following this investment. Through this partnership, the company expects to close deals concerning 400 rooms more in Madrid.
Flipco expects to have 500 rooms operational by the end of 2022
At the end of the year, the housing management company predicts to earn around 750.000 euro. «It is a number which will grow very quickly, since next year’s pipeline is for 500 rooms», explained the director. Focusing on investment and expansion, the company expects to break even in the short to mid-term. Flipco, established in Madrid, expects to finish the year with 15 employees with strong technological profiles.
«We are in advanced talks with other funds to reach other cities such as Seville, Valencia, Malaga and Palma», explained Harburguer, who also expects to be able to expand to other European countries in the mid-term. In order to grow, the company is seeking properties with between 500 sqm and 10.000 sqm with easy access to public transport.