Local co-living operator Hmlet has launched its first property in Tokyo, Japan, in a joint venture with Mitsubishi Estate Co (MEC), one of the largest real estate developers in Japan.
Located in the trendy Shibuya district, the 12-room Hmlet Shibuya Shoto is a purpose-built co-living building that features studios of 194 sq ft and one-bedroom duplex of 409 sq ft. Communal areas include a rooftop terrace that will also host specially curated community events. Renovations to the building were completed earlier this month, and residents are expected to move in from the middle of this month.
With a one-month minimum stay duration, based on regulations in Tokyo, membership prices start from ¥175,000 ($2,262) per month for studio units and ¥250,000 per month for a one-bedroom duplex.
The joint venture has committed US$25 million ($34.5 million) to fund this property over the next three years. Japan is expected to become one of Hmlet’s largest markets in the Asia-Pacific region, and the company plans to add more than 1,000 rooms to its Japanese portfolio in the next six months, including in cities such as Osaka and Nagoya.
Hmlet Shibuya Shoto is Hmlet’s first property in Japan (Picture: Hmlet)
According to Yoan Kamalski, CEO of Hmlet, the company sees a gap in the market where they can “bridge the gap for flexible, affordable and secure accommodation amidst rising rental costs”. He says: “The traditional model of stacking agency fees, advance rental payments and language barriers have been stressful complexities that have not yet evolved to meet the needs of modern residents.”
MEC was one of the investors in Hmlet’s Series B funding round in July this year which eventually raised US$40 million. The partnership will see MEC managing the sourcing of properties in Japan, while Hmlet will oversee all aspects of design and community management. In addition, Mitsubishi Estate Residence, a fully-owned company by MEC, will serve as Hmlet’s preferred real estate partner in the country. This will grant the co-living operator access to MEC’s pipeline of existing and in-development residential projects.
“We believe that Hmlet's unique co-living concept is both timely and relevant to the needs of Japanese young professionals. By leveraging Hmlet's tried and tested business model and Mitsubishi's local knowledge and network, we are looking forward to a successful expansion in providing additional solutions to today's modern residents,” says Kyota Kobayashi, general manager of business creation at MEC.
Hmlet already has around 93 locations in Singapore, Hong Kong, and Sydney. The company says it will operate more than 2,400 rooms by the end of the year.
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