The DTZ Investors Co-Living Fund (COLIV) has entered into a £32 mln (€36 mln) development facility, representing 65% Finance to Cost, to construct a 222-unit co-living development in Harrow near London.
Finance has been structured on a Shari’ah compliant basis and has been provided 50/50 by Bank of London and The Middle East (‘BLME’) and Bank ABC in London. CBRE’s Debt & Structured Finance team, part of CBRE Capital Advisors, acted as sole debt advisor to DTZ Investors.
Launched in October 2019, COLIV is the first dedicated co-living fund in the UK, launched in partnership with co-living developer and operator, The Collective. The development in Harrow was the seed asset in a planned portfolio of best-in-class, large-scale co-living assets with a target gross asset value of £1 bn. COLIV is also onsite constructing a 310-unit co-living scheme in Earlsfield.
Upon completion in Q4 2021, the 87,000 sq ft (8,082 m2) development will be operated by The Collective, and will benefit from 27,000 sq ft of communal amenity space, including a gym, cinema room, library, communal kitchen, laundry room, games room, roof terrace, a restaurant and co-working space.
Chris Cooper, CEO of DTZ Investors commented: ‘We are delighted to be working with BLME and Bank ABC on the recapitalisation of COLIV’s development project in Harrow. This commitment from both banks is another demonstration of the strong investor appetite to access the rapidly evolving co-living sector. Construction is progressing well onsite, having just topped-out the eight storey frame, meaning we are now less than 12 months from opening the doors. Plans are well afoot for delivering an affordable housing solution that will focus on building inclusive communities that focus on the health and wellbeing of our members.’
