The Coliving Company to seek 25M euros investment

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The Madrid market for alternative assets has a new operator

The company, a subsidiary of Inversiones Onys 22, finalized the identification of the assets and now plans to start a round of talks with future investors before the end of the year.

Inversiones Onys 22 expects to invest at least 25 million in its first project, according The Coliving Company's sources.

The company is promoted by the brothers brothers Oscar, Javier, David and María García Cerecedo and by Oscar García Fernández. All of who have experience in real estate in companies such as Atrium 22.

The intention of the company is to acquire assets of at least 5,000 square meters from the hand of investors to completely reform them and subsequently manage the coliving part while the investors would own the property. In this sense, it does not rule out buying land and promoting real estate from scratch. To begin operations, The Coliving Company plans to start a round of talks with several investors interested in the project before the end of the year.

At the moment, the company is in the search phase of the assets that could be converted into a building dedicated to coliving. In this sense, from the company they affirm that they have “identified two assets that could cover all the needs”, both located in Madrid. Thus, the capital of Spain, along with the Costa del Sol, are the first two markets in which the company wants to enter, which does not rule out making the leap to other areas later.

It is planned that the first coliving center managed by the company will not open its doors at least until 2022, since the company estimates that it needs “at least” two years to transform the asset and manage all the necessary licenses, both work and construction.

The Coliving Company believes that coliving "has great potential in Spain" despite having "regulatory and regulatory reserve difficulties in the real estate market itself. Most of the colivings that exist are small in size," they explain.

On the other hand, it also denounces that many spaces that call themselves as coliving really "are apartments that have been divided into rooms." In this sense, the company understands that a conventional building must be completely rehabilitated, since "they require more services and the size of the rooms is larger" than in a conventional residential building.

A growing market despite the fact that coliving is a market segment that is landing in the Spanish market, more and more companies are dedicating resources to the transformation of assets to dedicate them to this business.

For example, the asset manager Mazabi will allocate 40 million euros in the creation of a coliving in the building that occupies the numbers 8, 10 and 12 of Madrid's Madrazo street. The asset has 8,000 square meters of residential and is expected to open its doors at the end of 2020.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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