— MEDICI LIVING Group and CORESTATE Enter Investment Agreement to Develop 35 New ‘QUARTERS’ Co-Living Locations, 6,000 Units Across Europe —
NEW YORK–(BUSINESS WIRE)–December 12, 2018–
The parent company of QUARTERS, one the fastest-growing co-living brands in the U.S., today announced a €1bn investment agreement for its European portfolio. This initiative — the largest single co-living investment worldwide — is a key milestone in the firm’s growth and prelude to an American expansion projected for 2019.
Under the record-breaking announcement, Berlin-based MEDICI LIVING Group, one of the largest co-living service providers in the world, and Frankfurt-listed CORESTATE Capital Holding S.A. (CORESTATE), one of Europe’s largest real estate investment managers, have jointly agreed to invest €1bn of equity and debt in the co-living sector over the next three to five years, developing 35 new co-living assets across Europe.
“This investment is a breakthrough for the co-living sector worldwide,” said Gunther Schmidt, MEDICI LIVING 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 are building the WeWork of co-living,” Mr. Schmidt added.
In addition to MEDICI LIVING’s current European target markets of Germany, UK, and 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 – existing as well as new-build – with an investment volume of between €20m and €60m.
The partners expect the program to include around 35 assets in total, which the MEDICI LIVING Group will operate under the QUARTERS brand. With its high-quality facilities, QUARTERS, which also has locations in New York and Chicago, targets young professionals and offers a residential and living experience aligned with the needs of Millennials.
CORESTATE will handle investment, project development, financing, and asset and fund management, while the MEDICI LIVING Group will be responsible for the conceptual design and operation of the properties. Already one of the largest co-living service providers in the world, Medici will grow its current portfolio of 1,800 rooms to more than 7,800 rooms with the program.
“Urbanization, 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,” said Dr. Michael Bütter, CEO of CORESTATE. “Investment in the co-living segment is characterized 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.”
With locations in New York, Chicago, and Berlin, QUARTERS is a global co-living brand that offers a new and unique living experience for young professionals. The QUARTERS lifestyle is built on convenience and flexibility and is driven by the understanding that the value of home is created by shared experiences. https://goquarters.com/
About MEDICI LIVING Group
The Medici Living Group, the largest provider of co-living services worldwide, develops and operates innovative, digitalized residential and co-living space concepts for different target groups with different needs around the globe. For its co-living brands medici living (student co-living) and QUARTERS (co-living for young professionals), the group leases existing assets as well as new buildings. Overall, the portfolio of the Medici Living Group encompasses 1,800 rooms worldwide, which are 97% occupied. All residential units are leased long-term and furnished by Medici. CEO and founder Gunther Schmidt launched the Medici Living Group together with Robert Gmeiner and Ferdinand von Fumetti, co-founder and managing director, in 2012.
About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with approximately EUR 25bn in assets under management. As a fully integrated real estate platform, CORESTATE offers its clients combined expertise in the areas of investment and fund management as well as real estate management services. The company operates as a respected business partner of institutional clients and wealthy private investors internationally. CORESTATE is headquartered in Luxembourg and has 42 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 730 people and is listed in the regulated market (SDAX) of the Frankfurt Stock Exchange. Further information is available at www.corestate-capital.com.