DTZ Investors has forward-funded a 310-room co-living project in Earlsfield, in a deal requiring £70 million of total investment.
The Collective, which is the fund’s property and asset manager, will build-out and operate the development on Trewint Street, in the London Borough of Wandsworth.
Once complete, it will be the second asset in the fund following the forward-funding of The Collective Harrow, which was announced when the fund launched in October last year.
According to Chris Cooper, chief executive officer at DTZ Investors, the co-living fund was launched in 2019 to provide ‘high-quality, flexible and socially responsible housing in London’.
“We want to have an impact beyond the four walls of our real estate by connecting with our local communities and promoting better health and well-being for our residents,” he says. “Together, we will work with local charities to give back to the causes that matter most to the community.”
The Collective Earlsfield will provide 35% on-site affordable housing targeted at key workers. The indoor and outdoor communal spaces will help to unite the community and combat loneliness. A bespoke Community Investment Plan has been agreed with The Collective and the local authority.
Reza Merchant, chief executive officer and founder of The Collective, says: “We’ve been impressed with the proactive approach taken by Wandsworth Council to unlock the delivery of this project. The co-living asset class is demonstrating its resilience in the context of the Covid-19 pandemic and the current economic climate, and we remain focused on delivering our pipeline of projects in the UK and across continental Europe and the US.”
The development will be funded with a mixture of equity – drawn down from the fund – and debt, which will be provided by alternative asset manager, Cheyne Capital.
The fund is committed to achieving sustainable housing solutions, promoting health and well-being. whilst delivering value for money for co-living residents.
More than a quarter of the 120,000 sq ft development – which will achieve BREEAM ‘excellent’ certification – will be dedicated to resident amenities to encourage social interaction, including a café, co-working space, events space, a communal dining and kitchen area, cinema room, laundry facilities, shared lounges and a library.
Outdoor spaces adjacent to the River Wandle will encourage residents to spend more time outside, and a gym and studio space will facilitate health and well-being focused events. Some 35% of the rooms will be affordable housing at discount market rent, with five rooms reserved for young people leaving foster care in the borough at significant discounts to local market rents.
A Community Investment Plan led by The Collective will also be put in place during the development period, which will identify a number of charities and social groups in the local area that the fund will work with to help resolve issues that are important to the local community.
This post has originally been featured in Property Investor Today.