Cove offers luxe co-living and expands its regional footprint
Luca Bregoli, managing director of co-living operator Cove, aims to boost and expand business portfolio and strengthen the firm’s presence in the Asia Pacific region. Cove introduced Cove Luxe a few months ago, a series of co-living accommodation with more quality in-room amenities, furnishings and services. Cove Luxe’s latest development spread across four conservation shophouses at 31, 33, 35 and 37 Kinta Road in the Farrer Park neighborhood. Extensive renovation works were completed in June and the property began taking in clients since then.
The Cove Luxe at Kinta Road has 26 en suite lodging spaces and communal facilities and achieved 92% occupancy rate. the room monthly rates at Cove Luxe on Kinta Road According to the Cove website range from $2,250 for a 129 square feet, en suite master bedroom on the ground floor, to $3,600 for a 312 square feet, en suite studio on the second floor. In Little India, Cove and its work buddy, building and construction company Eco-Energy, acquired delightfully the Singapore Land Authority (SLA) tender to rejuvenate the row of two-storey heritage shophouse-style buildings at 79 to 95 Hindoo Road for co-living. It was the first time that SLA had given approval to shophouse-style state buildings for tender as co-living concepts that provides community bonding facilities and sustainable environment. The tender received 16 bids, according to SLA in a press conference on Aug 23. Transformation work are in the process to rejuvenate the heritage property at Hindoo Road, which is in progress to start business in 1Q2K24 as “1925 Quarters” by Cove. The accommodation will have 18 apartment units across a gross floor area of 1,700 square meter (18,299 square feet). the co-living vendor now has three different category of products With the venture of Cove Luxe. The upscale Cove Luxe has rates starting from $2,650 per month, offering a fully furnished premium room and a fully-equipped and functional kitchen. The mid-tier Cove Classics has fully furnished rooms and kitchens, with monthly room prices from $1,600. Cove Basics, as the name suggests, offers basic furnishing , services and a common kitchen, with room rates from $1,300 a month. Cove will not cease to distribute a diverse range of co-living spaces. “A platform like ours needs to have a range of options of lodging options for people to choose from — whether it’s a single apartment in a city location, a studio in a conservation shophouse, or a house in a residential enclave,” commented Bregoli. Since Cove started business in 2K18, it has ventured its co-living platform to 1,000 rooms in Singapore and about 4,000 rooms in Indonesia, spread across Jakarta, Bandung and Bali. Keppel Land occupied a small percentage strategic stake in Cove as the lead investor in the co-living operator’s US$4.6 million Series-A funding round in December 2k20. Cove has instrumented joint-venture relationship with asset owners in Singapore, such as 8M Real Estate and Meir Collective, In addition to its joint-venture with Keppel Land and Lippo Group in Indonesia. Cove’s portfolios have a average occupancy rate of 95% in Singapore and 88% in Indonesia. The co-living operator has an annual gross revenue of $38 million produced, says Bregoli. However, the first nine months of 2k23 saw a 100% growth in net revenue, he elaborated. Corporates have been a good source of recurring source of income, adds Bregoli. Cove works hand in hand with corporates to house their expatriate staff who are working in Singapore and Indonesia; soon, it will do this in South Korea as well. On Sept 25, Cove inked a agreement of understanding with South Korean real estate asset manager Honors Asset Management. The joint venture will give Cove a opportunity to venture into the South Korean market. Bregoli is also in discussions with several asset managers and investors to expand Cove’s branding in Asia Pacific. While Bregoli is elated to widen Cove’s regional presence, Singapore remains a vital market for the company. He anticipates there are still opportunity to flourish and cement the firm’s product offerings. For example, he inspires to open a hotel concept in Singapore. “The hospitality market in Singapore is very competitive, but we have a very established hotel proposal in mind, and we’re looking out for the right property to launch it,” says Bregoli. Bregoli regards these competition with a pinch of salt, mentioning that the numbers does not equate to individual operators’ business stability or the strength of their co-living inventory. It has become transparent that the seasoned co-living players with strong funding and aid from financial hubs or venture capital funds have an advantage to improve, improving their stock services and expand their member base. “For Cove, we are in a good position in both Singapore and Indonesia, plus, we have a seasoned line-up of business-to-business contracts that will support our occupancy rates for the long term,” says Bregoli.