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UK: Private equity real estate platform DFI is to forward fund an £80 million GDV coliving development in Kingston upon Thames, London.
The off-market transaction will see the 200-bed asset delivered by developer Viewranks Estates.
The project, which has full planning permission and Gateway 2 approval, is located next to Kingston Train Station, a 30-minute train ride from central London. The area is experiencing significant undersupply of housing, with strong rental demand from young professionals and students, particularly recent university leavers just starting out in their careers and working in London. Residential demand is supported by a strong local economy in Kingston, led by consumer, professional services and technology sectors, with Unilever having opened its new HQ campus in Kingston Town Centre earlier this year.
Construction of the eight-storey coliving project is expected to start imminently. Residents in the 200 studios have access to a master-chef style kitchen, ground floor coworking spaces, bar, restaurant, a residents’ lounge, cinema, fitness studio, a communal terrace and a games room.
DFI plans to create a bespoke lifestyle brand tailored to the target market and will continue to explore opportunities in this sector, with a focus on key locations in and close to central London.
Francesco Orofino, investment director and head of hospitality at DFI, said: “This is a compelling, off-market opportunity to invest in a high-demand, undersupplied sector that is still evolving in London, under a defensive deal structure. We are working with best-in-class architects, designers and sector experts to create a flexible, branded residential experience that appeals to young professionals through ample amenities, living and working spaces, at rents that offer discount to comparable rental housing. With only around 7,000 coliving beds in the capital, we are bringing forward a high-quality, aspirational asset and one where we see real potential to replicate across the market.”
Gavin Neilan, founding partner at DFI, added: “This latest investment builds on DFI’s strong track record of creating institutional grade living assets across Europe where we focus on assets supported by demand tailwinds, undersupply and operational expertise. This includes Blaekhus, a student accommodation platform comprising around 1,200 student units, which DFI sold to PATRIZIA in 2022 for €314 million, as well as Mylo Living, a Danish flex living platform with a 350-unit asset in Copenhagen.”
Highlights:
- Private equity real estate platform DFI is to forward fund an £80 million GDV coliving development in Kingston upon Thames, London.
- The off-market transaction will see the 200-bed asset delivered by developer Viewranks Estates.
- Construction of the eight-storey coliving project is expected to start imminently
- DFI plans to create a bespoke lifestyle brand tailored to the target market and will continue to explore opportunities in this sector
