QIP banks on the lure of co-living in the UK and US

By Amy Tan / EdgeProp Singapore | July 12, 2019 9:00 AM SGT
Despite fears of a no-deal Brexit and global economic slowdown, Peter Young, co-founder and CEO of Q Investment Partners (QIP), believes there are still bright spots when it comes to property investment opportunities in the UK and the US.
In particular, the Singapore-based boutique real estate fund manager is adding co-living to its property portfolio. At the same time, it is also ramping up its student housing portfolio with properties in Bath, Edinburgh, Nottingham and Sheffield. QIP and its principals currently manage and execute around US$100 million ($135 million) in the co-living space and £120 million ($183 million) of investments in student housing.
He tells EdgeProp Singapore that both the student housing sector and co-living segment in the UK and US are asset classes that can weather economic uncertainty much better than residential property.
QIP recently invested in a 170,000 sq ft co-living space in Chicago's South Loop neighbourhood of Printer's Row (Artist Impressions: QIP)

Addressing changing housing needs

In key cities like London, where residential property remains unaffordable to many, he reckons that co-living offers a good alternative to residents and investors alike. “The co-living sector is also addressing changing demands of tenants as well as housing issues. Co-living fills a gap by providing convenience, connectivity to workplaces, city living and community,” he says.
As opposed to traditional long-term tenancies, co-living offers short-term rental contracts, allowing tenants the option of moving across cities. Standard facilities at co-living spaces include communal kitchens, living and dining areas, co-working spaces and gym.
He says: “When you think about co-living, it is about providing good real estate accommodation that activates and maximises space for the young professional and young adult market.” While co-living may be perceived as a new segment, Young asserts that “when you look at it as a real estate product, there are similarities compared with the existing serviced apartment market”.
Prior to founding QIP, Young was CEO and executive director of IP Investment Management (Picture Credit: Albert Chua/EdgeProp Singapore)
Currently, co-living is more pervasive in key cities in the...