Keppel Land invests in Singapore-based co-living operator Cove

SINGAPORE (EDGEPROP) - Keppel Land has taken a strategic minority stake in Cove Living as the lead investor in the start-up’s US$4.6 million ($6.1 million) Series A funding round.

Tan Swee Yiow, CEO of Keppel Land, says, “This investment is in line with Keppel’s Vision 2030 and Keppel Land’s strategy, where we seek to offer a full suite of urban living solutions that are driven by technology and highly complementary to our core real estate business.”

Cove, which was founded in 2018, has about 300 rooms and studios in Singapore and 250 rooms in Jakarta. It has plans to double to around 1,000 rooms by 1H2021 and expand to other key markets in Southeast Asia such as Vietnam and the Philippines. It uses artificial intelligence to match flatmates based on living habits and interests.

Tan adds that co-living solutions can be developed into scalable and sustainable recurring income streams for Keppel Land. He also notes that Cove has a complementary expansion strategy into markets in Southeast Asia where Keppel Land is already present, which means that Cove can leverage Keppel Land’s experience and wide networks.

“Cove is delighted to have Keppel Land onboard as the lead investor in our series A funding. We are fortunate to have found a partner that shares our vision to provide young people across the region with convenient, hassle-free housing options that can be booked at the click of a button,” says Guillaume Castagne, CEO of Cove. He estimates the co-living market to be worth over US$28 billion in Southeast Asia.

The above transaction is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation for the current financial year.