The parties will work together on acquisitions, conception and management of the properties. The cooperation marks the largest investment into the emerging co-living asset class worldwide to date.
«This investment is the breakthrough for co-living in Europe», says MEDICI LIVING founder and CEO Gunther Schmidt. He believes that the new asset class has even greater potential than the already thriving co-working sector. «The residential market is significantly larger than that for office assets. We want to become the WeWork of co-living», he added.
In addition to MEDICI LIVING’s current European target markets Germany, UK and Netherlands, the new investment programme will target Austria, Switzerland, Spain and Poland. The focus will be on cities with more than 500,000 inhabitants and properties – existing as well as new-build – with an investment volume of between €20m and €60m. The partners expect the programme to include around 35 assets in total, which the MEDICI LIVING Group will operate under the QUARTERS brand. With its high-quality facilities, QUARTERS targets young professionals and offers a residential and living experience aligned with the needs of the digital natives of Generation Y.
CORESTATE will take care of investment, project development, financing, asset and fund management while the MEDICI LIVING Group will be responsible for the conceptual design and operation of the properties. Already the largest co-living service provider in Europe, MEDICI will add an additional 6,000 rooms to its current portfolio of 1,800 rooms.
Michael Bütter, CEO of CORESTATE, comments that «Urbanisation, young people’s desire for community as well as the opportunity to live and work in different cities, are boosting demand for communal residential space. Investment in the co-living segment is characterised by the low risk profile of residential property paired, however, with higher yield expectations. Investors will profit from CORESTATE’s Europe-wide expertise in deal sourcing and the operative know-how of MEDICI LIVING».
Source: Medici Living Group