MGRV Community & Space, a South Korean startup that operates co-living facilities under the brand "Mangrove," announced on Wednesday it has attracted a Series B bridge fuding worth 12.5 billion won ($10.2 million) from a consortium of investors, including TS Investment, HB Investment, and Shinhan Asset Management.
The funds bring the total investment in MGRV to 32.5 billion won ($26.4 million).
Co-living, a new form of shared housing, provides independent private residential spaces and common areas for work, relaxation, and hobbies. In these facilities, residents have access to beds, toilets, and desks in their private rooms, and shared kitchens, terraces, and workspaces in public domains.
Starting with “Mangrove Sungin” in 2020, MGRV currently operates "Mangrove Shinsul" and "Mangrove Dongdaemun" in Seoul, with "Mangrove Shinchon" set to open on Feb. 17. Rent for a single room ranges from 700,000 won to 1 million won per month, while multi-person rooms cost between 300,000 won to 600,000 won per month.
Investors cited a changing "residential paradigm" as the reason for their investment in MGRV. With rising interest rates, the proportion of monthly rent has increased, while the growing number of single-person households and widespread telecommuting have boosted demand for appealing public spaces.
Co-living has gained popularity in major cities in the world such as New York, San Francisco, and London, where high housing costs have made this form of shared housing a popular alternative.
"MGRV is establishing its brand at a time of change in the housing industry, and its joint fundraising system with real estate asset management companies will ensure its stable expansion in the future," said Kim Jung-soo, managing director of TS Investment.
"We plan to expand our business to other regions beyond Seoul to achieve economies of scale in the domestic co-living industry," said MGRV CEO Cho Kang-tae.
Write to Jong-Woo Kim at
jongwoo@hankyung.com
