US-based private equity firm Bain Capital and real estate developer Sattva Group are teaming up to create a co-living platform, with a built-to-suit model, backed by an investment of USD 100 million (approximately INR 840 crore). The platform will be managed by Colive, a property management company, marking the largest funding received by an alternative fund for the development of a built-to-suit co-living asset. The platform will be co-owned by Bain Capital and the Bengaluru-based Sattva Group, with Bain Capital holding the majority stake. Colive will oversee the platform's management and operations.
The sale of Colive's new platform is expected to be finalized by the end of this month, as the paperwork is nearing completion. Each property within this initiative will span two to three acres, averaging 300,000 square feet, primarily catering to executives by offering serviced living options.
Founded in 2016, Colive is a joint venture between Suresh Rangarajan and Sattva Group. In 2019, it secured a INR 63 crore Series-A investment, obtaining a 50% stake in the business. Currently, Colive is in the process of raising an additional USD 20 million from Bain Capital to expand its rental homes division. The company currently manages 15,000 beds in the rental sector and aims to scale this to 50,000 beds within three years, with 30% of these under the build-to-suit model. Additionally, the Sattva Group is exploring opportunities to acquire land or partner on collaborative projects for further growth.
Sources indicate that the shared accommodation sector is actively seeking multiple partnerships with builders to expand its portfolio. However, Suresh Rangarajan, the founder of Colive and Sattva Group, was unavailable for comment.
Colive plans to increase its presence in key cities, including Mumbai, Pune, Bengaluru, Hyderabad, and Chennai. The company is also preparing to introduce hybrid integrated pods, which will combine co-living and co-working spaces in its future developments.
India's co-living market has seen significant demand growth, particularly among millennials and Gen Z, reversing the rental decline witnessed during the Covid-19 pandemic. According to a report by Colliers, India's co-living market is expected to expand substantially, reaching 450,000 beds by the end of 2024, up from 210,000 beds at the close of 2021.
With substantial backing from Bain Capital and Sattva Group, Colive's new platform is poised to play a pivotal role in the growth of India's co-living sector. The increasing demand for shared accommodation, particularly among young professionals, alongside strategic investments and future expansions in key cities, positions Colive to lead in offering modern, serviced living solutions. The anticipated growth of the co-living market suggests a promising future for this sector as it adapts to the evolving needs of urban dwellers in India.
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