Identify new submarkets
acquisition
- Rental platform representing property operators / connecting users
- Allow property owners to listed assets. Managed by COVE.
- Allows indication of what properties work in new territories.
- Use the platform to serve as a tool to identify property
BD / Source real estate feasibility & market analysis
DEMAND DRIVEN:
- First stage is understanding demand intimately:
- Demographics (i.e. SG Expats vs IND locals vs students) WFH concepts.
- Similarities & differences
- Propensity to pay & features scoring (Interviews & surveys?)
MATCH TO SUPPLY SIDE:
- Conceptual design to optimize living quality and financial returns
- Underwriting model.
Underwriting
- DCF modelling: Macro enabled, streamline the process.
- Cash Flow Basis
- Assumptions, Opex, and capex
- Profitability is a function of lease-up rate and rental rates.
- Return Requirements: Payback of 4 year, IRR over 10%+
Operating Models
- Master lease, guarantee base rental and maintenance to landlord with profit share (before/after breakeven)
Tell me about yourself
PRESENT:
- Core focus on expansion throughout Asia Pacific
- Source RE & building financial models
- Then present recommendations to board: Proceed?
- Lease negotiation rental. DD and closing on acquisition
- Full spectrum
PREVIOUSLY: (Reason Here)
- Developer in AZ, farmland into shovel ready industrial sites
- Bring in longterm user / tenant
- Sell stabilised asset back to AZ gov. or fund.
WHY CO-LIV? LAST YEAR, WHILST AT ES:
- Completed MSc Real Estate Investment Finance
- Thesis focus on co-living and its viability in Singapore.
- Became apparent that shared living is the asset focus. (Building space for peoples items vs
FUTURE:
- For ES I have facilitated opening of 21 facilities: SG, HK, TW, MY & KR
- I am confident I can facilitate similar growth at COVE.
Why are you a good fit for the role?
QUALIFICATIONS:
- Proven track record to grow business across multiple regions, the primary goal of job desc.
- Familiarity with co-living, passionate about the product.
TRANSFERABLE SKILLS:
- Negotiation: Well versed. Renegotiated terms of renewal, resulting in savings of 830K across 7 year term.
- Proposing JV & MA to counterparties (transferable)
- Working cross-department: Fit-out project management (AutoCad)
WHAT MAKES ME DIFFERENT:
- Career goals aligned with Cove.
- Eventually want to start a co-living fund. UK capital access to Asia.
- Can’t think of a better platform to shoot for that target.
Why COVE?
GOALS ALIGNED
- Recent funding your goal is to expand reach: Vietnam and the Philippines (4.6 m)
- My background makes well placed to help COVE achieve this.
FOUNDERS /OWNERSHIP
- Love the idea of being able to work closely with co-founders and who I can learn from.
- Clearly extremely capable with the speed of expansion 2 years.
- Plus opportunity to take full ownership of my work and results. This is a fantastic environment for growth.
What do you know about co-living?
- Smaller rooms more community space. Country and region-specific.
RESPONSE TO:
* Affordability, Delayed Life Events, Sharing economy, Work mobility, Immigration (SG context)
VALUE PROP:
- Community, Convenience & Cost
- Achieve higher margins or better monetize real estate assets that are less attractive otherwise.
FUTURE:
* Target demo is econ. active millennial. Largest group in the world today. Essentially tailoring RE to this group.
Weakness
- Earlier this year, pulled into a lot of projects and responsibilities. Not related to my role / expansion.
- As part of company, had hard time saying no and removing myself
- Delegate, learnt to say no and trusting that other departments to complete.
- EXAMPLE: Rental Increment.
- Did for one facility
Adapt / Failure
- Speedy deal. Big pressure to close quickly.
- Failure: Extent of some costs where overlooked, because we were working in silos
- Action:
- The big lesson was that: Must be collaborative.
FOR THE FUTURE: Time is
Process in place and checklists
Biggest Accomplishments
WORK (Lease Extension & IMM)
S * Flagship facility lease expiry 2032. Highest earning by some margin
T * Convince the JTC to grant lease extension for maximum term.
A * Created a in-depth business plan for the facility: current performance, future outlook (new business model). Presented to JTC committee as supplement to documentation.
R* Resulted in max 8 year extension. Projected value-add of $25m
University
PRESS but little academic foray
Set out to determine: Can Co-living Succeed in SG?
- Interviewed Operators
Dermined conditions for successful project - Modelled 3 case study’s to test
Result the sucess benchmark - Modelled repurpose to co-living.
Compared results.
Gave good understanding of the product
Technical Background
- Cap rate= NOI/Property Value (increase cap, prop decrease)
- IRR=Annulized time weight return
- Equity multiple = EQUITY INVESTMENT/DISTRIBUTION
- Cash on cash=Annual net cash flow / equity investment
