Medici Living, a German co-living aggregator, has recently raised €1 billion in capital. The company stated that this recent funding is the largest investment they've ever received in the nascent sector. Medici will use the capital to help achieve its goal of becoming the "WeWork of co-living."
Medici Living has teamed up with Frankfurt-based Corestate Capital to buy and build as many as 35 co-living facilities in Europe — and it is planning an even larger expansion in the U.S.
The €1 billion will comprise equity and debt, and will be deployed in major capital cities across Europe to build up a portfolio that could total 6,000 beds. Market sources suggested the company has already raised separate equity with a different partner to invest in the U.S. and had its first new deals lined up. The U.S. capital raising in 2019 is likely to match or exceed that in Europe.
In the U.S. Medici already has two facilities in New York and one in Chicago, and as well as those cities it will be looking to buy or build co-living buildings in Boston, D.C., Denver, Philadelphia, Los Angeles, San Francisco and Austin, Texas.
The company is looking to quickly build scale and be an early mover in what it thinks will be a fast-growing sector.
“If you look at the coworking sector, there are multiple players and it is not a winner-takes-all market,” Medici founder and Chief Executive Gunther Schmidt told Bisnow. “But if you look at WeWork, it is 20 times bigger than most of its rivals, and that is because of its ability to attract massive amounts of capital the fastest.”
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