PARIS–(BUSINESS WIRE)–Colonies designs and runs living spaces offering its inhabitants the comfort of fully furnished private spaces and access to shared living spaces in a spirit of community (gyms, laundry facilities, rooftops, etc.).
French research and consulting company BVA1 recently published a study that attests to the relevance of the model, since 66% of people under 35 say they feel lonely.
After successfully opening its first residences in France and Germany, Colonies now aims to accelerate its development in Europe and will launch more than 50 new projects in 2020.
“We are very pleased with this new funding, which represents an endorsement of our vision and of our development forecasts. In just one year, we have already achieved operating profitability with 3 projects in Paris and the Ile-de-France region and 2 in Germany. We have put this concept of shared living to the test and it has worked. The trust our existing investors have in us is also a strong indicator of the relevance of our model and the quality of the team,” said Alexandre Martin, co-founder of Colonies.
New investors and continued trust of existing backers:
The growth and operating profitability achieved in the first year validated Colonies’ vision, model and operational excellence. Confident in the ability of the founders to accelerate growth and become the European leader in the sector, the existing investors – Idinvest Partners, Global Founders Capital and La Financière Saint James – have reinvested 30 million euros in this new round.
LBO France, a French investment fund with more than 30 years of expertise, will enable Colonies, through €150m in funding, to accelerate its property development and expand its offerings to meet ever-increasing demand. As it stands, 50 new projects should be completed in France and the rest of Europe in 2020.
“We now offer institutional investors the opportunity to gain exposure to the ultra-resilient housing market without the management risk, as we do everything for them – from sourcing assets to operating them. We are delighted to partner with the LBO France teams who have a sharp understanding of what’s involved in the co-living sector. The first projects to come out of this collaboration will be developed as early as this summer,” said Amaury Courbon, co-founder of Colonies and main contact for property investors.
“At Colonies, the first thing we wanted to bet on is the team: pioneers in co-living, focusing on the profitability of their model and ready to open up a huge market in France and Europe”, explained Antoine Zins, Investment Manager at Idinvest Partners.
“We are very pleased to support a new paradigm for urban residential property. Of all the property sectors, housing is the one that has failed to evolve: Colonies, a true pioneer in France, is offering a new concept and real expertise at a time when housing in urban areas is becoming more and more complicated and lives are becoming less sedentary,” said Stéphanie Casciola, Partner and Head of Real Estate at LBO France.
“As one of the first investors in Colonies, we are particularly pleased to be able to support the company in this phase of strong growth, after having demonstrated the relevance of its product, the solidity of its business model and the quality of its teams,” commented Hugues de Braucourt, Partner at Global Founders Capital.
Created in 2017 by Alexandre Martin, Amaury Courbon and François Roth, Colonies is France’s pioneer in the co-living sector. The company’s mission is to create the housing experience of tomorrow. Colonies bases its offerings on 3 cornerstones: spaces, services and community life. It currently runs residences in Paris, Berlin, Noisy-Le-Grand and Fontainebleau.
1 BVA study for Astrée (2018)