France: US investment manager Ares management will fund the expansion of French coliving operator Colonies to the tune of €1 billion.
The funding will be used to add 2,000 additional units in three European cities to the Colonies portfolio.
Colonies opened its first property in Paris in 2019. It was founded by founders Alexandre Martin, François Roth and Amaury Courbon.Today it has 120 properties in 11 cities in France, as well as Berlin, Brussels and Luxembourg.
The objective of Colonies has remained unchanged: to allow young working people to find accommodation “as simply as possible” in large cities (including Marseille, Bordeaux and Nantes).
Initially, it operated houses that it adapted to create communal living spaces. Since last year it has added apartments, and now it wants to open “supercolocs”, assets of 40 to 350 apartments with common areas such as cinema rooms, large meeting rooms, games rooms and so on.
The company sources, develops, operates properties but as yet doesn’t offer coworking. However, it is adapting its residential offer to accommodate new ways of working. “Covid and confinements have changed the situation: we must also think about teleworking spaces in new roommates. For example, putting sockets in the right places, having a powerful wifi or even more isolated places for possible phone calls,” said Alexandre Martin.
Tenants benefit from turnkey accommodation for an average of €590 per month. Rents are collected by Colonies, which pays them to the building’s owners who pay the start-up a double commission: every month on the rents, and once during the development of the accommodation carried out by Colonies.
Seven out of ten tenants are young workers, with an average age of 31, the rest students.
