UK: Fund manager Moorfield has agreed to forward fund an 81-bed coliving scheme near Ealing Broadway.
The £21 million scheme represents Moorfield’s debut in the coliving space, and is the first investment by a joint venture between Moorfield and Funding House, called the Zennor partnership.
The JV offers developers the opportunity to enter into forward funding agreements with an experienced investment partner. A co-investment mechanism permits developers to generate additional returns through the increased value of assets anticipated following operational stabilisation.
Having acquired the site in November 2019, subject to planning, and subsequently secured consent for 81 units, Urbane London, a London-focused residential developer, will act as the development manager.
The Squire & Partners-designed scheme will open in late 2023. It will offer 81 high-en-suite studios across a range of unit types, alongside 1,800 square feet of amenity space including a south-facing roof terrace, coworking space, kitchens and storage for 83 bikes.
The BREEAM Very Good scheme will feature an air source heat pump, photovoltaic panels, no gas services and biophilic design.
The property is located less than a one-minute walk from Ealing Broadway station, a major interchange station that will connect residents to Heathrow in 15 minutes, Bond Street in 11 minutes, and Canary Wharf in 25 minutes, via the soon-to-open Elizabeth Line.
Ross Netherway, head of origination at Moorfield Group, said: “Increasing demand, underpinned by a growing youthful population and exacerbated by housing undersupply and limited affordability, underpins our conviction in the nascent London co-living sector. This acquisition is fully aligned with our strategy of pioneering investment in sectors benefitting from demographic and societal change, and will deliver a high-quality, amenity-led rental product with strong sustainability credentials, in one of London’s most dynamic and well-connected submarkets.”
“We are also excited to be partnering with Funding House, pairing our proven investment expertise with experienced and reputable developers in the living sectors capable of delivering sustainable and future-proofed schemes. At the same time, the partnership’s co-investment structure offers developers the opportunity to generate attractive additional returns and ensures all parties are aligned in delivering the highest quality rental product and service to residents,” he added.
Tim Attlee, founder of Funding House, said: “We are excited to be partnering with Moorfield, who have a long and successful track record of investing in the UK with entrepreneurial partners. This transaction marks our entry into the co-living sector, and we expect this to be the first in a significant series of similar investments for the joint venture in the UK Living sector.”
