Amro Partners and NTT UD Europe (NTT UDE), a subsidiary of Japanese real estate developer NTT Urban Development, have formed a joint venture partnership to fund the development of The Rex co-living project in London.
The £80 mln (€92 mln) gross development value project located directly opposite Kingston train station represents NTT UDE’s first foray into the UK residential market and the first joint venture between the two parties.
The project will deliver 210 co-living units and is expected to be the first co-living building in the UK to achieve BREEAM Outstanding status in addition to the targeted Fitwel 3*, WiredScore platinum and ActiveScore platinum ratings.
The project will see part of the existing substructure and superstructure retained to maximise embodied carbon reuse, making it one of Europe’s most sustainable buildings on completion in January 2025.
Raj Kotecha, chairman and CEO of Amro Partners said: 'NTT UDE are a fantastic long-term partner for Amro and we are delighted to have closed the first of what both parties intend to be a number of joint ventures in the UK residential market.'
Yasutake Horinouchi, member of the board and head of global business of NTT Urban Development, said: 'NTT UD is promoting environmental impact reduction with advanced approaches, and we are pleased to collaborate with Amro Partners, whose stance and business approach are highly compatible with ours. Through our partnership with Amro, we plan to accelerate the expansion of our business in the UK.'
Amro’s co-living model comprises shared facilities including a residents’ lounge, communal kitchens and dining rooms, a wellness centre, co-working spaces and a rooftop terrace.
Amro has over 2,000 purpose-built rental homes under development across Greater London and is actively seeking further land opportunities in London, Manchester and Birmingham.
Amro is on-site with a 278-unit built to rent project in Ealing (The Wiltern), West London with Pension Insurance Corporation, and has recently submitted a planning application for the creation of a £200 mln gross development value build to rent project in Croydon (Botanical House), South London delivering 455 new homes and shared amenity spaces.
NTT UDE’s global business originates from the acquisition of an office building in London, in November 2009.
Since then, NTT UDE has expanded its real estate exposure and, with The Rex co-living project, is embarking on its first residential investment.
NTT UDE said it would continue to build up a significant portfolio through acquisition and development of income producing assets in the UK.
Knight Frank advised on the transaction.
