Selina Who Backed by Former WeWork CEO Seeks $500 Million Fund for Hosting Millennial Travelers

October 12, 2019

Adam Neumann’s tenure as CEO of WeWork ended last month as the joint venture’s joint venture suspended an initial public offering – but one of his many bets laid for rapid expansion. basis.

Selina provides office space, accommodation and leisure activities to travellers and is currently working with Bank of America Corp. to raise $500 million in investment funds for US real estate. Neumann is one of the company’s most outstanding supporters, including Access Industries from Len Blavatnik and Colony Latam Partners from Tom Barrack.

Gery, who previously worked at WeWork, Morgans Hotel Group and Marriott International, said that with debt, the new car would use about $1 billion to buy or lease US real estate and pay for things like conversion costs. The idea is similar to WeWork’s real estate investment platform, ARK, which attracts institutional investors to buy the company’s office as a tenant.

To be sure, the two companies focus on different categories. Unlike WeWork’s office, Selina sells a modern bohemian lifestyle to customers known as “digital nomads”, surfers and adventurers. Its website has pictures of apartments and shared offices, as well as shelters and a tree house by the sea.

When executives “recognize that there is a better, lighter asset way to fund growth, and there is no cost to us, Selina uses her own money to cover the cost of building a new property. “There is a great opportunity to turn troubled real estate into related income-generating real estate and conduct it on a large scale.”

Selina’s valuation reached $850 million in April as it raised $100 million from Access Industries, Peru’s Grupo Wiese and Colony Latam Partners, which acquired Abraaj Group’s private equity platform in Latin America. Neumann and Abraaj previously invested $95 million in April 2018.

The startup is looking for executives to implement new cars, with the goal of completing fundraising in the first half of 2020. In the United States, the company focuses on hubs such as Miami, New York and San Diego, and plans to expand throughout the city including Los Angeles, Portland, Seattle, Austin, Washington, New Orleans and Chicago. It also aims to open an “off-grid” location nearby, such as Woodstock, New York, to receive a company retreat.

Internationally, Selina relies on partners to buy or lease real estate and carry out renovations. These include Grupo Patio in Chile, Ampa Real Estate in Israel and DD3 in Mexico. Gery said it plans to continue to do so, especially in Asia. However, if this US fund performs well, Selina can raise a fund focused on Europe to accelerate growth there.