Published in Fund Society on February 2018
The millennial generation, also called Generation Y, which includes those born between 1977 and 1994, has changed consumer habits with respect to other generations, modifying branding strategies. Currently, Generation Y accounts for 23% of the population of the European Union.
Millennials are great followers of technologies. They are always willing to share their experiences, they are not worried about their privacy, it is not something they value. That which is not shared has no value and has never existed. They do not want to buy a product because of their status, but rather because of their experience. They no longer buy a second home or even a first one. It is unnecessary for their way of life. They are open to sharing and do not feel obligated to belong to a neighbourhood or to a city. They are the new generation of the world. These trends are giving rise to new opportunities for investors.
In order to respond to millennial needs and tastes, Excem Real Estate has designed a real estate investment strategy according to their habits to cover the present and future of a generation that has already changed the world. The investment priorities have been in three sectors: tourism, residential, and office. For each one, the firm has identified its niche of opportunity, launching three Socimis (Real Estate Investment Trust): Excem Situr, dedicated to hostels (tourism), Excem Sir dedicated to houses for students (residential) and Excem Siwork, dedicated to coworking (offices). With this real estate investment strategy, Excem Real Estate covers the lives of millennials.
What better way to share your experiences than traveling around the world from hostel to hostel? That is why Excem Hospitality has launched its own corporate brand of LOV Hostels, with three brands: Hatch will be its premium brand, Mad for backpackers, and Cats as “party hostels.” Our commitment to cover all the needs of millennials goes further: with this offer of accommodation, young people can move from one place to another in search of experiences, activities, and socialization.
These accommodations will be in unique buildings in the tourist centres of main cities around the world, with a 7.5% rental income, which is more than the other sectors, and which makes the real estate investment very conservative and high potential to increase in value.
But millennials not only travel to enjoy, but also to study, work, and live in homes and shared spaces around the world. Excem Real Estate has the SIR Socimi for the acquisition of housing in the centre of major cities destined for young students and young professionals to live together, which have become one of our best business and investment opportunities. Rents at 7%, guaranteed given its high demand and scarce supply, stable value, and constant growth.
Labour mobility: this business concern has always been about lacking flexible work spaces and the ability to share new work systems. This is why Excem Real Estate has its Siwork Socimi, dedicated to the purchase of office buildings destined for coworking. They are offices in which the most important thing is not the space or the table you have, but the community to which you belong and the networking that allows you to relate to all sectors all around the world. This ability makes it easier for all companies with this work atmosphere to be more competitive than the rest. For all this, Excem buys buildings in city centres, obtaining a stable income of 5% and a safe value from their investments.
With abilities that have been proven for more than 45 years, we have designed an investment strategy based on rigorous analyses and studies, through the creation of innovative business models, with the aim of achieving stable returns above the market value and with a great wealth reserve. This trend has managed to attract the attention of investors and funds as perfect investments in real estate assets.
Our accommodations offer the best quality for their price, central locations in major cities, innovative and technological design, spaces for socializing, and multiple leisure options. We have managed to follow trends and create a firm, reliable, and transparent project with guarantees for the investor.
Tribuna de Andrés Sánchez Lozano, CEO of Excem Real Estate.
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