Hmlet ties up with property developer to expand into Japan

Singapore

SINGAPORE-BASED Hmlet has expanded its presence to Japan through a joint venture partnership with investor Mitsubishi Estate Co (MEC).

The move will see a combined investment of US$25 million to fund the expansion in the next three years, the co-living company said on Tuesday.

MEC, a real estate developer in Japan, most recently took part in Hmlet's Series B funding round in July where it raised US$40 million. Through the partnership, MEC will manage property sourcing, while Hmlet oversees all aspects of design and community management of the co-living spaces.

MEC unit Mitsubishi Estate Residence will also become Hmlet's preferred real estate partner in Japan - which will grant the co-living operator access to MEC's pipeline of existing and in-development phase premium residential buildings.

Hmlet, which will also have the flexibility to work with other real estate developers in the country, is planning to grow to 10,000 rooms in Japan in the "coming years", with its first Japan property being located in Shibuya, Tokyo, which is slated for launch in mid-October. It also plans to expand to Osaka and Nagoya.

Japanese aesthetics will be incorporated into the co-living spaces, along with activities that will allow members to engage with the local community, said Hmlet Japan chief executive Kenichi Sasaki.

Hmlet chief executive Yoan Kamalski said the Japan expansion looks to bridge the gap for flexible, affordable and secure accommodation amidst rising rental costs.

"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," he said.

MEC general manager of business creation Kyota Kobayashi added: "By leveraging Hmlet's tried and tested business model and Mitsubishi's local knowledge and network, we are looking forward to a successful expansion in providing additional solutions to today's modern residents."

Founded in 2016, Hmlet expanded to Australia through Sydney in February this year. Last year, it expanded to Hong Kong through its acquisition of co-living startup we r urban.