UK-focused real estate fund manager Moorfield Group has agreed to forward fund an 81 bed co-living scheme near Ealing Broadway, West London, for £21 mln (€25 mln).
The deal, which was signed on behalf of the Moorfield Real Estate Fund IV, represents Moorfield’s entry into the fast-growing London co-living sector.
The transaction is the first investment by a joint venture between Moorfield and Funding House offering developers in the UK ‘Living’ sector the opportunity to enter into forward funding agreements with investment partners.
Having acquired the site in November 2019, subject to planning, and subsequently secured consent for 81 units, Urbane London, the specialist, London-focused residential developer, will act as the development manager.
The Squire & Partners designed scheme is expected to be ready for its first residents in late 2023. It will offer 81 high quality en-suite studios across a range of unit types, alongside 1,800 sq ft of amenity space including a south facing roof terrace, co-working space, kitchens and storage for 83 bikes.
Ross Netherway, head of origination at Moorfield Group, commented: ‘Increasing demand, underpinned by a growing youthful population and exacerbated by housing undersupply and limited affordability, underpins our conviction in the nascent London co-living sector. This acquisition is fully aligned with our strategy of pioneering investment in sectors benefitting from demographic and societal change, and will deliver a high quality, amenity-led rental product with strong sustainability credentials, in one of London’s most dynamic and well-connected submarkets.’
The investment further extends Moorfield’s investment in the UK residential sector, which for many years has comprised investments in Build-to-Rent (More.), student accommodation (Domain) and retirement villages (Audley). More recently, Moorfield has entered the nursing and dementia care home sector with a £125 mln partnership with Allegra Care, invested in family homes through the acquisition and leaseback of a portfolio of show-homes from the housebuilder, Avant Homes, formed a £600 mln joint venture with Bricklane to invest in single family homes and partnered with We Are Kin to build a nationwide portfolio of professionally managed student houses.
