Sattva Group and Bain Capital have announced a partnership to accelerate the growth of Colive, Sattva's co-living subsidiary. This joint venture will see an investment of INR 12,000-14,000 crore over the next 2-3 years to develop properties tailored for the co-living market. The initiative aims to build "built-to-suit" assets with an estimated pre-sales value of INR 6,000-6,500 crore in FY25, targeting young professionals and students. This partnership leverages Sattva's extensive real estate expertise and Bain Capital's financial strength, positioning Colive to capture a larger share of India's booming co-living market.
Bengaluru-based real estate developer Sattva Group is joining forces with global investment giant Bain Capital to accelerate the growth of its co-living subsidiary, Colive, in a deal that could significantly impact India's co-living market. This strategic partnership will create a dedicated platform with an investment of INR 12,000-14,000 crore over the next 2-3 years to develop properties specifically designed for the growing co-living market.
The new platform will focus on building "built-to-suit" assets - a concept gaining traction in India's real estate market.These properties, with an estimated pre-sales value of INR 6,000-6,500 crore in FY25, will be tailor-made for the needs of co-living operators like Colive. This means the properties will be designed with shared living spaces, common amenities - think co-working areas, gyms, and entertainment zones - and features that cater to young professionals and students seeking a vibrant and convenient living option.
This partnership is a win-win for both parties. Sattva Group, with a total constructed portfolio of 80 million square feet (msf), brings its expertise in real estate development to the table. Bain Capital, a major player with global experience,provides much-needed capital to fuel Colive's expansion plans. Colive, already a major player in the co-living space managing 3.8 million sq ft across eight cities, will benefit from a steady stream of new, high-quality properties. This strategic alliance positions Colive to capture a larger share of the rapidly growing co-living market in India, which has witnessed a significant boom in recent years.
Driven by factors like urbanisation, rising living costs, and the increasing popularity of shared living arrangements among young professionals, the co-living market in India is expected to continue its growth trajectory. This partnership between Sattva Group and Bain Capital signifies a strong belief in the potential of co-living and positions Colive for continued growth in the coming years.
It's important to note that Sattva Group isn't solely focused on co-living. The company has ambitious expansion plans across its entire portfolio. With another 88 msf in the pipeline, Sattva Group is poised for significant growth in the residential and commercial real estate sectors as well. In the current fiscal year, the company plans to launch a staggering 21 million sq ft of residential projects across major cities like Bengaluru, Hyderabad, and Mumbai. They're also planning to enter the Mumbai market with land acquisitions for 1.5 msf of launches. In the commercial segment, they have projects of over 13 msf under construction across various cities.
This strategic partnership with Bain Capital strengthens Sattva Group's position as a major player in the Indian real estate market, with a diversified portfolio and a focus on emerging trends like co-living.
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