CoLife partners with Mars Realty for furniture lease rental model

Bengaluru’s largest shared living and working space company CoLife has partnered with Mars Realty for the furniture lease rental model to furnish 500 keys in a deal inked for INR 1 crore. The company, which operates the brand currently, operates 3 lakh sq. ft across 300 apartments in the city and is looking to expand by another 12 lakh sq. ft. in the coming months.

CoLife announced this along with the launch of their new luxury residential co-living property, Prime Towers in BTM. This announcement comes close on the heels of the company recently raising its seed round of $1Mn through a convertible debenture.

Under the furniture lease rental program, Mars Realty will purchase furniture and offer it on lease to CoLife towards furnishing its living spaces. Mars will receive monthly lease rentals from CoLife and furthermore be eligible to claim depreciation on the assets purchased that are leased out, thus fetching a higher IRR on their investment.

Announcing the first partnership under this unique program with Mars Realty, Suresh Rangarajan, Founder – CoLife said, “The furniture rental model has been conceptualised to ensure real estate investors benefit from higher returns with minimal exposure in the rental market. While traditionally investors have been purchasing immovable property and renting them out, CoLife presents a unique opportunity to purchase and rent out moveable assets. Such lease rental models are extremely popular in the western market and we are proud to be the first company to bring this to India.”

Mars Realty Founder and CEO Prashanth Sambargi adds, “We are firm believers in the rental market, especially in a city like Bangalore which has a high influx of migrants. The association with CoLife gives us access to tap into this high potential segment with this unique arrangement.”