The opportunity

First opportunity to invest in large scale, purpose-built co-living projects in Australia. Co-living is a sub-class of the build-to-rent sector, with private ensuite accommodation and shared community spaces. Demand is fuelled by urbanisation, lack of housing affordability, and population growth. Investors receive a rental premium of 30%+ over conventional build-to-rent assets via higher density construction, operational efficiencies and the removal of third-party property managers. Residents enjoy lower costs of living, flexible lease arrangements that suit their lifestyles and all-in rents that include furniture, utilities and Wi-Fi.

About the manager

micro.space is a Sydney-based asset manager and operator, introducing purpose-designed and purpose-built co-living communities to Australia. micro-space manages every aspect of origination, financing, construction, marketing and operation of these communities. The company was founded in 2016 by long-term colleagues and business partners, Michael Ossege and John Zappia, who met while working at Campus Living Villages (CLV). CLV is one of the largest providers of on-campus student accommodation in the world with assets of more than AU$1.3 billion and 35k beds in 40+ projects globally.

Michael and John have assembled a team with expertise and experience in financing, constructing and managing large-scale, specialised residential real estate projects. micro.space co-living communities combine space, community, services, and technology into one integrated product that delivers the best experience for residents.

About the strategy

The fund will develop and operate a network of large scale co-living communities with approximately 1,200 studio units in up to 4 projects in city-fringe locations5. The strategy has been heavily influenced by environmental and social factors. Its objective is to be net self-sufficient in terms of electricity generation and consumption (via solar PV) and deliver a 20% lower carbon intensity and 10% lower water intensity per resident vs new conventional residential developments. In addition, micro.space targets cost-of-living savings of $5,000 per resident per annum.

 

 

 

1. Net of fees, gross carried interest Return to the reference

2. Post development, geared Return to the reference

3. With recurrent options to extend Return to the reference

4. Target gross asset value of $350m. Target fund size may be scaled up to $150m (Hard-cap; with 4-6 assets), subject to initial investor feedback and interest Return to the reference

5. Predominantly in Sydney, may also invest in Melbourne and the ACT Return to the reference