It seems like co-living has really grown in importance in Singapore, even as more and more expats (the main population group in the co-living spaces) are leaving Singapore. Demand has increased due to social distancing measures, construction delays, and home workplaces.
Against this background, we also see that more co-living providers are expanding. Co-living provider The Assembly Place (TAP) announced that it has secured four more buildings under five- plus five-year management contracts.
These include the former Footprints Hostel at 25A Perak Road and Serviced Apartments at 3 Tank Road, 18 Penhas Road and 272 East Coast Road.
With these new assets, TAP now has almost 550 rooms, which are spread over 16 specially built co-living assets. The rooms currently have a high occupancy rate of 98 percent.
Moving forward with an asset-light strategy
Including new assets, The Assembly Place currently manages $ 250 million worth of real estate across the city-state and is well on track to meet its 1,000-room goal by Q1 2022.
“We are delighted and proud that The Assembly Place is the leading, purpose-built co-living operator with the support and trust of individual property owners, investment companies and family offices.
“This is strong evidence that through our expertise as a development, asset manager and co-living operator, TAP can create value for asset owners,” said Eugene Lim, Founder and CEO of The Assembly Place.
But unlike other co-living operators who operate on a pure rental model, 95 percent of TAP’s portfolio has five plus five year management contracts, making it an asset light operator.
In addition, the provider is reviewing management contracts for several commercial properties. With a growing pool of member databases, Lim believes that it will enable TAP to explore new ways to manage aging commercial buildings and increase returns for asset owners.
But the provider does not rule out a decision in favor of a pure leasing model either.
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“While TAP continues to scale its business with an asset-light model, we are also reviewing assets under a pure leasing model if the location and finances make sense,” adds Lim.
TAP has secured a number of shops and properties on a pure lease basis, including 398 Race Course Road.
These co-living rooms will be operational until October.
Another property that is under the pure rental model is the Amerald Studio at 1 Seraya Lane.
While TAP rents out individual rooms for its other assets, entire units are rented out here.
It is aimed at a different group of tenants, such as families, who want their own privacy. Since its introduction four months ago, the co-living space has reached 100 percent occupancy.
Cooperation with like-minded consultants
Together with the builders, The Assembly Place commissioned OWAA Architects to design the four recently secured properties.
OWAA was founded and run by twins Lee Wah Fong and Lee Wai Fong, who have more than 15 years of experience working with international architectural firms.
Some of the projects they have worked on include the DUO Tower, Paya Lebar Quarter, and The Verandah Residences, which focus on creating communities through well-designed spaces.
“We are very excited to be working with the Lee Brothers, who understand our needs and their strong track record on some of the most iconic projects in the city-state,” notes Lim.
The partnership comes after Lim and Lee Wai Fong participated in the design and development phase of The Verandah Residences.
Preservation of the heritage by converting conserved shop houses
While the conversion of storefronts is fraught with restrictions, The Assembly Places seems to remain undeterred.
“What we love about protected goods is their story. While there are more constraints during the design and space planning phases, it’s the rich history and the ability to be part of the gentrification work that makes the design process interesting, ”says Lim.
“We want every member who walks into the space to experience the story of the rich culture and heritage told through the architectural design of these shophouses.”
The company’s latest shophouse offering includes the Jalan Besar 138 to 142, which will be operational by October. Prices start at $ 2,250 per month for a minimum rental of three months.
