Keppel Land Limited has taken a strategic minority stake in Singapore-based co-living company Cove as the lead investor in the start-up’s US$4.6 million ($6.1 million) Series A funding round.
Cove was founded in 2018 and is a co-living company that is one of Southeast Asia’s fastest-growing companies in the industry.
The company seeks to reimagine urban rental for young people, many of whom have flexible housing needs which are not met by conventional home rental models.
Cove currently has about 300 high-quality rooms and studios in Singapore and about 250 in Jakarta.
By 1H2021, the company hopes to double its offering to around 1,000 rooms. It also plans to expand to other countries including the Philippines and Vietnam.
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“This investment is in line with Keppel’s Vision 2030 and Keppel Land’s strategy, where we seek to offer a full suite of urban living solutions that are driven by technology and which are highly complementary to our core real estate business,” says Tan Swee Yiow, CEO of Keppel Land. “Co-living solutions can be incorporated in our development projects, potentially augmenting their value, and be developed into scalable and sustainable recurring income streams for Keppel Land.”
“Cove has a complementary expansion strategy into markets in Southeast Asia where Keppel Land is already present. It will be able to leverage our experience and wide networks as it scales up in providing well-managed, quality homes to a growing segment of those seeking creative shared living spaces that offer unique and vibrant community experiences,” Tan adds.
“Cove is delighted to have Keppel Land onboard as the lead investor in our series A funding. We are fortunate to have found a partner that shares our vision to provide young people across the region with convenient, hassle-free housing options that can be booked at the click of a button,” says Guillaume Castagne, CEO of Cove.
“Together, we are well-placed to build a sustainable business that capitalises on the global co-living phenomenon, a market we have estimated to be worth over US$28 billion in Southeast Asia,” Castagne adds.
Shares in Keppel Corp closed flat at $5.29 on Dec 15.
