Hmlet, one of the fastest growing coliving operators in Australia, has launched in Tokyo with joint-venture partner Mitsubishi Estate Co, Ltd. (MEC) to bring their vision of community-based living to Japan. A combined investment of US$25 million will go into funding this latest expansion over the next three years.
Japan is expected to be one of Hmlet’s largest markets in the region, where more than 1,000 rooms will be signed in the next six months, and subsequent plans for expansion to Osaka and Nagoya are also in the pipeline. This marks the company’s fourth country, including existing markets like Singapore, Hong Kong and Sydney, Australia.
With plans to grow to 10,000 rooms in Japan in the coming years, the first Japan property, Hmlet Shibuya Shoto, will launch in Shibuya mid-October. The purpose-built co-living building features a range of studio and duplex configurations, as well as a communal rooftop where members can connect, network, relax and attend specially-curated community events.
MEC, one of the largest real-estate developers in Japan, is also an investor in Hmlet’s latest Series B funding round. As part of the partnership, MEC will manage the sourcing of properties while Hmlet will oversee all aspects of design and community management. Additionally, Mitsubishi Estate Residence (MER), which is fully owned by MEC, will serve as Hmlet’s preferred real estate partner in Japan. This arrangement grants Hmlet access to MEC’s large pipeline of existing and in-development phase premium residential building, as well as the flexibility to work with other real estate developers in the country.
“We have expanded to Japan due to Hmlet’s potential 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. Hmlet can provide a much needed solution in Japan by offering hassle-free, custom designed homes coupled with a sense of belonging and community, “ said Yoan Kamalski, CEO of Hmlet.
"We believe that Hmlet's unique co-living concept is both timely and relevant to the needs of Japanese young professionals. 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," said Kyota Kobayashi, General Manager of Business Creation Dept, Mitsubishi Estate Co, Ltd.
“While co-living spaces are a relatively new concept in Japan, we believe our model will meet today’s demands around accommodations, including an increasingly mobile workforce and professionals that travel domestically for work,” said Kenichi Sasaki, CEO of Hmlet Japan. “In Japan, we will incorporate Japanese aesthetics into our co-living spaces, as well as activities that will allow our members the opportunity to engage with the local community, giving them a space, they can call home.”
Hmlet’s expansion to Japan comes shortly after the company secured AU$55 Million in Series B funding to accelerate growth across APAC in July 2019. This is in line with Hmlet’s goal to continue bridging gaps in demand for affordable, flexible and secure housing for gateway cities where housing is becoming increasingly unaffordable.
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