The Assembly Place, a co-living operator in Malaysia, has launched a 426-bed premium student housing at 116 Lorong J Telok Kurau. The Campus by TAP is divided into two buildings on the 104,469 square feet site. A smaller block of three storeys with 161 bed and a bigger block of four stories with 265 bed. Eugene Lim is the founder and CEO at TAP. He says, “We bring co-living to student housing.”
In the three-week pre-marketing period, more than 120 beds were already booked in the smaller blocks, and students had moved in.
Students are mostly from China, Myanmar, Thailand, and Vietnam. The majority of the students are at James Cook University and Kaplan City Campus. We have MOUs (memorandums of understanding) with 14 institutions and 10 already list our properties on their website. “We’re aiming for November enrollment,” Lim says.
Campus by TAP rooms come in different sizes and configurations. The rooms with 2 or 3 beds are premium, while those with 4, 6 or 7 beds fall into the standard category. All rooms are air-conditioned. The average monthly rate is $850, while the top-end beds can cost up to $1600. According to Lim, the premium rooms are nearly all taken.
The Continuum Singapore is a short drive to Campus by TAP.
The amenities include an air conditioned residents’ room where films can be shown, an outdoor air-conditioned cross-fit area, a basketball field that can also be used to play five-aside soccer, giant chess sets, and outdoor seating. As the area is large, Lim created spaces that were communal for students.
On the first floor of each block, there is a dining room and a social kitchen, which are equipped with kitchen equipment and vending machine with instant noodles, ready-to-eat food, and milk. On the second floor of each block, there is a co-study room. The study area will be located next to each student’s bed, along with a closet. On each floor, there are male and female restrooms with shower facilities.
Lim claims that 55% of TAP members are under 30. These include 65% international students. Lim realized there was a market untapped for student housing. Most students, however, have monthly housing budgets of under $1,000. The monthly rent of a co-living room, which is typically $1500 to $2000 per month, was deemed too high for them. He decided to investigate the housing market for internationals in Singapore.
Lim says that when he began to research the available options, he was shocked. We are very behind in our student housing options compared with the student housing that is purpose-built in Australia, the US, and the UK.
TAP is on track to have 2,000 beds by 2023, which includes the Campus with 426 beds. TAP opened 42 rooms in 6 Duke’s Road, Geylang on February of this year. All the rooms were occupied within six weeks. TAP took over the 80-room Feng Lai Mansion apartment building at Lorong 30, Geylang, in early April. TAP manages these apartments as shared living spaces. The rooms were all taken within two months after the launch.
The former Goodland Building, located at 18 Roberts Lane off Serangoon Road, has begun renovation works. TAP is also taking over 21 Lorong 13, Geylang, a building it will gradually take control of from December. TAP’s co-living portfolio will include 55 rooms from the two combined buildings.
TAP opened its first project of serviced apartments, YMCA at Stevens, in March with 46 rooms and 27 units. TAP Service Residences at River Valley is its second residence. It opened recently, 3 Tank Road. This month, a third serviced apartment at 18 Penhas Road opened.
TAP currently has 1 800 beds, including the newly launched Campus. By 2024, the plan is to reach 3,000 beds. Lim explains that TAP has a positive cash flow, but to accelerate our growth we need to raise more money.
There are very few large sites available to be used as student housing. These include communal areas. Knight Frank launched the sale of Lorong J Telok Kurau in September 2022. More than 15 offers were made at the end of the auction the next month.
Top bidder was a joint-venture between TAP, and Apricot Capital. Apricot Capital is the family office for David Teo who founded the Super Group empire of instant drinks. Purchase price for the 103-year term was $40 million (383/sqft). Apricot Capital owns the majority of shares in the joint-venture, whereas TAP is the owner and operator of the accommodation. The Presbyterian Church of Singapore is the seller. They still hold the underlying 999 year lease.
The joint venture partners spent an additional $6 million in 3 1/2 months to retrofit the property. The air conditioning, electrical system, plumbing, and casement windows were all replaced. Landscapers spent nearly $1 million on the site. Landscape architect was Thanapong Boonyasiriwat, director of Ecoplan Asia.
Lim says that because we bought this property on a lease of 103 years, we are willing to spend more money in capital expenses. Most SLA (Singapore Land Authority) sites have a lease of only nine years, which limits the amount that people will invest in capital expenditure.
Campus by TAP rooms come in different sizes and configurations. The rooms with 2 or 3 beds are premium, while those with 4, 6 or 7 beds fall into the standard category. All rooms are air-conditioned. The average monthly rate is $850, while the top-end beds can cost up to $1600. According to Lim, the premium rooms are nearly all taken.
The amenities include an air conditioned residents’ room where films can be shown, an outdoor air-conditioned cross-fit area, a basketball field that can also be used to play five-aside soccer, giant chess sets, and outdoor seating. As the area is large, Lim created spaces that were communal for students.
On the first floor of each block, there is a dining room and a social kitchen, which are equipped with kitchen equipment and vending machine with instant noodles, ready-to-eat food, and milk. On the second floor of each block, there is a co-study room. The study area will be located next to each student’s bed, along with a closet. On each floor, there are male and female restrooms with shower facilities.
Lim claims that 55% of TAP members are under 30. These include 65% international students. Lim realized there was a market untapped for student housing. Most students, however, have monthly housing budgets of under $1,000. The monthly rent of a co-living room, which is typically $1500 to $2000 per month, was deemed too high for them. He decided to investigate the housing market for internationals in Singapore.
The property had been used as EastLodge for 120 rooms of student accommodation in the two existing blocks before it was sold to the Apricot Capital-TAP joint venture. Telok Kurau primary school used to be housed in the 1960s-era building.
Lim anticipates a $4 million annual income when all the buildings have been fully leased.
TAP will offer more than just beds for students. Career talks could be in tech, sports, or F&B depending on what the student’s interests are and which programmes they have enrolled in.
Lim says that it’s crucial to create a sense of community. Mental wellness is important. Students from other countries may be lonely in Singapore without the presence of their family members. It’s vital to provide programmes which allow students to socialise with other people.