Shawbrook has provided a £23.8 mln (€28.5 mln) loan to Urban Centric, facilitating the development of Wales' first co-living scheme.
Located in Cardiff, the project will transform a 5,574 m2 office building at Knox Court into a modern co-living space featuring 203 units.
The scheme will offer residents access to a range of amenities, including a gym, private dining areas, and a cinema, all within a building achieving an "A" EPC rating.
The loan will cover construction costs, including the addition of two new floors, and assist with tenant acquisition. The project is expected to be completed in January 2026.
Alongside Shawbrook's financing, Urban Centric has secured a £7.6 mln (€9.1 mln) equity investment from Housing Growth Partnership (HGP), a part of Lloyds Banking Group.
John Hughes, senior relationship director at Shawbrook, commented: ‘This partnership, alongside the Housing Growth Partnership, combines our financial expertise with their innovative vision, propelling the project forward. Co-living 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.’
Andrew Wood, director of Urban Centric, said: ‘Following the successful completion of our first scheme with Shawbrook in Swansea in 2022, we were delighted to partner with them once again on this landmark project. Their flexible and tailored funding approach has been instrumental in helping us bring our vision to life and we look forward to working with them in the future.’
Mike Murphy, director of Housing Growth Partnership, added: ‘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. 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.’
