Co-living operator Hmlet opened for business in Japan this week through a newly-formed joint venture with developer Mitsubishi Estate Company, according to an announcement from the Singapore-based firm.
The partners, which plan to open their first shared living facility in Tokyo in the middle of this month, aim to establish a network of 1,000 rooms in Japan within the next six months, as Hmlet continues to ramp up its presence in Asia Pacific.
The three-year-old shared living pioneer already has 93 operating properties in the region and says that its joint venture with Mitsubishi Estate will open 10,000 rooms in Japan as it invests a combined $25 million in the country over the next three years.
Shibuya Launch on Way
The joint venture’s initial property will open its doors in Tokyo’s hip Shibuya district, offering millennials in search of communal living a range of studio and duplex apartments, as well as a rooftop where they can network, relax and take part in community events.
“We have expanded to Japan due to Hmlet’s potential to bridge the gap for flexible, affordable and secure accommodation amidst rising rental costs,” said the company’s CEO, Yoan Kamalski. “The traditional model of stacking agency fees, advance rental payments and language barriers have been stressful complexities that have not yet evolved to meet the needs of modern residents.”
Mitsubishi Estate invested in Hmlet’s series B funding three months ago and will serve as Hmlet’s preferred real estate partner in Japan, giving the Singapore firm access to the existing portfolio and future project pipeline of one of the country’s largest developers.
Teaming Up with One of Japan’s Largest Developers
“We believe that Hmlet’s unique co-living concept is both timely and relevant to the needs of Japanese young professionals,” said Mitsubishi Estate’s general manager of business creation, Kyota Kobayashi.
Kenichi Sasaki, Hmlet’s Japan CEO, added that despite being a new concept in the country, co-living helps meet the needs of Japan’s increasingly mobile workforce as more professionals travel domestically for work.
The co-living operator’s Japan residences will incorporate Japanese aesthetics as well as activities that give members the opportunity to engage with the local community, according to Sasaki.
Hmlet Enters Fourth Country
The launch in Tokyo, which adds a fourth country to Hmlet’s existing presence in Hong Kong, Singapore and Australia, comes three weeks after the company signed a multi-asset deal with Australian real estate firm Revelop.
That partnership with the ten year-old redevelopment specialist will see Hmlet double its properties down under to eight, bringing its total number of rooms in Australia to 300.
In April, Hmlet secured HK$310 million in capital from investors including Burda Principal Investments and Mitsubishi Estate, which the co-working company said it would use to ramp up its presence in Asia Pacific.
Two months before that round of funding, Hmlet entered the Australian market through the acquisition of co-living operator Caper Co-living.