Mitsubishi Estate will expand into the co-living business, a housing arrangement in which tenants with common interests share a living space. Employees will use apps to assist formation of co-living communities as well as provide services.
The company plans to open its first co-living property in Tokyo's Shibuya district in mid-October 2019.
Mitsubishi Estate has partnered with Singapore-based Hmlet, the largest co-living operator in Southeast Asia with 800 rooms in three countries. The number of rooms Hmlet will be managing by the end of 2019 is expected to reach 2,500.
The two companies established Hmlet Japan with 200 million yen ($1.8 million) in direct capital and will expand the business mainly through the joint company. During fiscal 2019, they will open at least 100 rooms, mainly in central Tokyo. After this, the company plans to expand into Osaka and Nagoya over the medium to long term, with the eventual goal of operating 10,000 rooms.
The inaugural property is in a residential district that is two-minute walk from Shinsen Station on the Keio Inokashira Line and a 12-minute walk from JR Shibuya Station. Nearby is the publicly run Shoto Museum of Art.
There are 12 studio apartments in four aboveground floors, with sizes ranging from 18 sq. meters to 38 sq. meters. The total area of the co-living space is 259 sq. meters.
The space was developed by property developer Properst and completed in October 2018. It was acquired by Mitsubishi Estate Residence in June 2019.
Hmlet Japan plans to operate the property as Hmlet@Shibuya Shoto.
This report first appeared in Nikkei Real Estate Market Report on October 16, 2019.