Seoul, South Korea - COVE, a leading flexible living operator based in Singapore with operations extending to Indonesia, and the distinguished Korean asset management firm, Honors Asset Management, have forged a strategic partnership as outlined in a Memorandum of Understanding(MOU). This alliance is aimed at tapping into the burgeoning co-living sector in Korea.
With a diverse portfolio encompassing traditional assets, real estate, and growth capital, Honors Asset Management has been a dominant force in multiple sectors within Korea. In parallel, COVE has made significant strides in the realm of flexible living, overseeing more than 5,000 rooms in Singapore, Jakarta, Bandung, and Bali. Notably, COVE has maintained partnerships with major institutional landlords in each country: 8M and Meir Collective in Singapore, Lippo Group and Keppel Land in Indonesia.
Co-living, characterized as a modern housing paradigm, combines shared spaces such as living rooms and kitchens with private quarters designed for individual occupants. In Korea, this cutting-edge model is embraced across diverse real estate categories, including Urban Residential Housing, Officetels, and other lodging structures. According to a report by Savills, Seoul, which stands as the epicenter of this upward trend, has approximately 6,200 units as of May 2023, excluding short-term accommodations. An impressive CAGR of 20.5% from 2014 to YTD 2023 emphasizes the mounting interest and demand in this sector. Although still in its formative stages, the market is experiencing a pronounced increase, fueled by the advent of new entrants.
Through this MOU, Honors Asset Management and COVE are set to establish an exclusive partnership. Leveraging Honors' deep insights into the Korean real estate market, both firms plan to unearth co-living investment and business opportunities. COVE, with its extensive expertise in co-living operations, garnered from various regions, is anticipated to successfully roll out these ventures. This collaboration aims not only to innovate Korea's co-living market and infuse fresh energy into the urban residential culture but also to set new benchmarks for co-living in the country. Both firms express a strong belief that their shared commitment and pursuit of excellence will enhance lifestyle quality and steer the transformation of urban living in modern times.
