With an increasing number of people shunning the commitment of property purchase and turning to renting, co-living is an attractive option for those looking for flexible leases and a fuss-free rental experience.
It holds major appeal for expats and locals alike looking for more privacy and a space to call their own, especially during the pandemic when the majority of the workforce was directed to work from home.
Acquiring more living spaces
Five months after co-living startup The Assembly Place (TAP) successfully raised S$5.55 million in its first seed funding round, it struck a deal with Libeto Pte Ltd to acquire all its Singapore assets. Assets include its head leases and subleases, amounting to 120 rooms, and its experienced operations team. Libeto is the operator of co-living spaces under Commontown Singapore.
TAP’s CEO and founder Eugene Lim is excited about the acquisition and capability of the incoming team, stating that they possess a wealth of knowledge and experience regarding global hospitality and operations. It places TAP in an advantageous position to support the ongoing Singapore expansion.
“Together with our existing team, we are confident that TAP will continue to scale aggressively this year whilst providing stellar levels of service and operational capability.”
Ian Lau, CEO and co-founder of Commontown Singapore, sees the combination of the two companies as a progressive step forward in the property market.
“Eugene and the team at TAP have the resources, vision and determination to excel in this industry, and we are pleased and excited at this opportunity to work with them in changing the face of real estate in Southeast Asia and beyond.”
Co-living is clearly a favoured rental option in Singapore, with Commontown’s occupancy peaking at 100%.
More rooms in the pipeline
Cementing its place as a co-living giant in Singapore, TAP’s latest acquisition brings its asset count to over 600 operational rooms, plus another 200 rooms ready to be launched by May 2022.
On top of the acquisition, a 181-bedder co-living hostel at 25A Perak Road and a 4-storey residential block at 257 Outram Road are slated to be up and running next month in April 2022.
TAP is currently in the phase of planning and construction for serviced apartments at 3 Tank Road, 272 East Coast Road and 18 Penhas Road. All three projects are on track to be launched by Q4 this year and are under a management contract model.
Aggressive acquisition activity
Despite being a co-living leader, TAP isn’t resting on its laurels. Since its fundraising round in November 2021, TAP has been on an active acquisition spree.
Almost 250 rooms were added to the company’s portfolio over the past ten weeks. These rooms are straight leases around the bustling and dynamic districts of River Valley, Tiong Bahru, Novena and the East Coast area.
In contrast to the 5+5 year management contracts making up 95% of its portfolio in 2021, TAP has since transitioned to a 60% management contract and 40% straight lease model.
The Assembly Place’s beginnings
Lim has strong roots in the property sector, with over 15 years of experience managing countless major assets for listed property giants.
In 2019, he saw the need to disrupt and revolutionise the traditional real estate market as an increasing number of people embraced the co-living concept.
TAP started with just six rooms and has since expanded a hundredfold to more than 600 rooms across Singapore, with 200 more in the pipeline. Currently, the company is managing more than S$250 million of assets.
New lease of life
Unlike the traditional rental model where renters have to commit to a place for at least a year or two, Lim offers curated, move-in-ready spaces in various convenient locations with short-term flexible leases. Leasing allows for agility, in the event of a sudden change in circumstances such as leaving the country or switching locations.
Residents can enjoy a streamlined process in the form of an all-inclusive package of utilities, furniture, maintenance and wi-fi. The Assembly Place also offers the most elusive amenity: community.
Members have access to a priceless social community of like-minded individuals to mingle with within the communal spaces – something that solo renting lacks.
TAP is also continuously improving its mobile app, where members can stay updated on important announcements such as community events updates and the latest news and articles. Plus, the app helps in minimising the heavy data entry processes and digitalises documents such as tenancy agreements and e-stamp documents.
Would you consider co-living at The Assembly Place? Let us know in the comments section below or on our Facebook post.
If you found this article helpful, check out Co-Living Tech Startup The Assembly Place raises $5.55 mil in seed funding and How circuit breakers boosted co-living demand.
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