Blueground, a New York-based high-end rental flats firm, on Wednesday said it has raised $50 million (£38.9 million) and will start investing in London for the first time.
The six-year-old company leases properties and then decorates them with upmarket interiors and sorts high-speed wi-fi before subletting them on tenancies starting from one month. It wants to have 1500 central London apartments by 2023.
Its debut in the capital will be before the end of the year and it also wants to open in Paris and Seattle.
Expansion follows a new round of fundraising, secured from backers including private equity group Prime Ventures and WestCap Investment Partners which was founded by Laurence Tosi, a former finance chief at Blackstone and Airbnb.
Alex Chatzieleftheriou, Blueground’s boss, said: “London is an excellent addition to our existing locations and we are really confident that it will become our largest European market soon.”
Many Londoners priced off the housing ladder are looking for longer-term professionally managed rental homes. Meanwhile business travellers want flexible lets.