Pan-European private equity real estate manager DFI is forward funding an £80m (€93.4m) UK residential development being delivered by London-focused developer Viewranks Estates.
Construction of the eight-storey, 200-bed co-living development in Kingston upon Thames is expected to start imminently.
The investment builds on DFI’s track record of creating institutional-grade living platforms across Europe. Past transactions include the Blaekhus student accommodation platform, sold to Patrizia in 2022 for €314m, and Danish flex-living operator Mylo Living, which owns a 350-unit asset in Copenhagen.
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 c. 7,000 co-living 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, said: “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 c. 1,200 student units, which DFI sold to Patrizia in 2022 for €314m, as well as Mylo Living, a Danish flex living platform with a 350-unit asset in Copenhagen.”
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