UK: Shawbrook has provided developer Urban Centric with a £23.8 million loan to fund the conversion of a Cardiff office block in to 203 coliving units.
The 60,000 square foot Knox Court building is the former Cardiff HQ of Legal & General. The funding will cover the construction of the scheme, including the addition of two new floors, and assist with tenant acquisition.
Urban Centric was granted planning permission for the scheme in July, subject to s106 agreement.
The building occupies a prominent corner frontage onto Fitzalan Place, which provides a direct route onto Newport Road, the main arterial road both through Cardiff city centre and out to the east of the city.
John Hughes, senior relationship director at Shawbrook, said: “We are pleased to support Urban Centric in launching Wales’s first co-living scheme. This partnership, alongside the HGP, combines our financial expertise with their innovative vision, propelling the project forward. Coliving offers a flexible, community-focused living experience that resonates with today’s urban residents seeking affordability and connection. Working with Urban Centric again underscores our commitment at Shawbrook to fostering strong relationships with developers. By understanding the unique needs of each project, we deliver tailored funding solutions that provide the stability essential for successful completion and future growth.”
Urban Centric has also secured an additional £7.6 million equity investment from Housing Growth Partnership, part of Lloyds Banking Group (HGP), to support the delivery of Knox Court.
Mike Murphy, director at Housing Growth Partnership, said: “This first investment alongside Urban Centric highlights the ever-growing significance of equity funding in creating, regenerating, and delivering vibrant communities and homes that meet an unmet demand for housing in key regional UK cities. It also underscores our team’s capability in executing complex equity transactions across the UK Living sector. Co-living in particular is a nascent but fast-growing product, as people prioritise city centre living and the infrastructure and social advantages it brings.
“It’s been great working with the team at Urban Centric to date and the collaboration with Shawbrook has given us the reliable financing and confidence needed to bring this project to life. Their clear communication and hands-on approach have been instrumental in ensuring the smooth progression of this development. We look forward to further collaborations in the south-west as we continue to support developers in delivering high-quality, affordable living spaces that meet the UK’s housing demand,” he added.
