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Embassy Group launches first co-living centre in Bengaluru for millennials, professionals

The group plans to touch 100 buildings by the end of 2021 under the co-living sub-brand Olive Residences.

The Bengaluru-based Embassy Group on November 24 launched its first co-living centre in the city, offering accessible and flexible accommodation to millennials and out-of-town professionals.

Olive by Embassy, the company’s co-living brand, launched its asset-light management business Olive Residences. The aim is to touch 100 buildings by the end of 2021 across major cities like Bengaluru, Mumbai, Pune, Chennai, Hyderabad, and Delhi-NCR.

“We are happy to announce our foray into a new segment, offering migrant solutions for millennials and building/hotel owners. The pandemic has enhanced the need for flexibility, secure living and the importance of communities,” said Aditya Virwani, COO, Embassy Group.

Co-living spaces are community-based housing facilities that combine the features of hotels with those of private homes. They offer a wide range of services that take care of tenant requirements like utilities, housekeeping and connectivity and offer shared spaces such as lounges, business centres, game rooms and gyms. Most of the accommodations are close to city centres where offices are.

It is far more economical than renting a whole apartment as tenants are charged only for the facilities they use. Basically, they are charged per bed and the add-ons.

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Also read: Millennials to help grow co-living market in India by more than double by 2025: Report

Olive Residences launched its first property in Koramangala where 1 BHK residences are ready to be moved in. Two more properties in Magrath Road and Indiranagar of the city will be ready in the next three months.

The group will target college students and professionals employed with multinational companies housed in and around its business parks. The plan is to target 100,000-owned and operated beds over the next few years, the company said.

The group is looking to make the most of a growing global trend. The co-living sector has become an asset class comparable to multi-family accommodation within the same age-group as standard amenities, communal living and comparably lower costs appeal to the millennials.

Olive Residences launched its first property in Koramangala where 1 BHK residences are ready to be moved in. Two more properties in Magrath Road and Indiranagar of the city will be ready in the next three months.

The real estate group had in August announced its foray into the co-living segment with a $500 million investment over the next three years.

Also read: Co-living, student housing generate higher rental yields than traditional formats: Report

“Our purpose-built portfolio at Olive co-living are planned in and around our business parks and Olive Residences will be complementary to our business, with city-centric locations where demand is high, the land is scarce and expensive,” Virwani said.

This asset-light business model would allow the company to maximise returns for building owners by 30-40 percent higher than other operators, he said.

Olive Residences will take up residential buildings and hotels under a management agreement in the central locations of metro cities. These fully serviced all-inclusive accommodations will feature a rooftop terrace with a lounge, bar, yoga deck, fitness and a gaming area.

Under the main brand Olive, the Embassy group will develop greenfield co-living facilities on its land parcels or purchase new land.

With a two-fold membership approach, one can choose a primary location in the city and gain access to member partner "escape locations" as well as the exclusive Olive Club on a “pay as you go” system.

At the city centre escape location, the Olive club at the rooftop of WeWork Galaxy on Residency Road, Bengaluru, members would have access to a rooftop swimming pool, gym and more amenities.

Additionally, members will receive complimentary benefits at the growing network of Embassy Leisure venues such as Sanchez, Sriracha, Shiros, Hard Rock Café as well as the Embassy International Riding school. Olive Residence units will be priced starting at Rs 16,500 onwards.

“Olive will be the world’s first private residence club for millennials based on sharing economy. The idea behind it is ‘why have one address when you can have ten or more’! People love change and we at Olive, wanted to offer diverse and interesting experiences to today’s generation,” said Kahraman Yigit, Co-Founder and CEO, Olive by Embassy.

The pay-as-you-go system would ensure that residents only pay for the amenities used, with no hidden charges, he said.

Earlier this year, the Embassy group launched Olive by Embassy, the purpose-built co-living facilities to enhance the lifestyle of young working professionals and students by offering community living and a walk-to-work commute.
Moneycontrol News
first published: Nov 24, 2020 06:29 pm

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