Embassy group starts first co-living centre in Bengaluru, targets 100 facilities by 2021
In August, Embassy group announced its foray into the co-living segment with a planned investment of $500 million over the next three years to expand the business across major cities
Embassy group, which recently entered into co-living business, on Tuesday said it has started its first centre in Bengaluru in tie up with a building owner and plans to touch 100 facilities by the end of next year through this asset-light model.
In August, Embassy group announced its foray into the co-living segment with a planned investment of $500 million over the next three years to expand the business across major cities.
"We entered into the co-living business under the brand "Olive by Embassy'. Now we are launching a sub brand 'Olive Residences' which is an asset-light model where we will take up buildings or hotels from owners and operate it," Embassy group COO Aditya Virwani told PTI.
"We will enter into a revenue share model with building owners," he said.
Virwani said this model is more scalable and the target is to reach 100 buildings by 2021-end across major cities -- Bengaluru, Pune, Chennai, Hyderabad, Pune and Delhi-NCR.
Under the main brand Olive, Embassy group will develop greenfield co-living facilities on its own land parcels or purchase new land.
"The pandemic has enhanced the need for flexibility, secure living and the importance of communities," Virwani said.
This asset-light business model allows Embassy group to maximize returns for building owners by 30-40 per cent higher than other operators, he said.
The group has launched its first centre under 'Olive Residences' brand in Koramangala, Bengaluru comprising 64 beds, said Kahraman Yigit, Co-Founder and CEO, Olive by Embassy.
Olive Residence units will be priced starting at ₹16,500 onwards per month.
Two more properties in Magrath Road and Indiranagar, Bengaluru will be ready in the next three months, Yigit said.
Olive Residences will take up residential buildings and hotels under a management agreement in the central locations of metro cities across India.
Embassy Group will target students from colleges and working professionals employed with multinational companies in organized Grade A business parks across major cities.
The plan is to target 100,000 owned and operated beds over the next few years.
Founded in 1993, Embassy Group is the country's leading real estate player with a broad portfolio of over 62 million Sq Ft of prime commercial, residential and industrial space in India.
It recently sold a large commercial portfolio to Embassy REIT for nearly ₹9,800 crore.
Embassy group is also into co-working business and owns WeWork India.