Co-living operator and developer The Collective has fallen into administration after failing to find a buyer.
The privately-held firm has appointed FTI Consulting to assess potential options following unsuccessful attempts to raise capital from investors and undertake a sale. The pandemic has seen occupancy levels at The Collective slide, and the firm has faced delays in the development of non-operational assets, according to a statement distributed by FTI.
According to a news report by Bloomberg in June, the firm had previously appointed Credit Suisse to conduct a strategic review which could have led to a full or partial sale.
'It is incredibly disappointing that a sale of the group has not been achieved,' Matthew Callaghan, a senior managing director at FTI, said in the statement. 'We will continue to work with the various stakeholders to ensure a smooth transition.'
The Collective’s current portfolio includes properties in west London and the capital’s Canary Wharf district, as well as the Paper Factory in Long Island City, New York. Members get access to facilities including gyms, co-working spaces and a library, and can stay there for months or just days at a time.
The Collective also has four sites under construction and 13 in the pre-development phase across the UK, Ireland, Germany and the U.S., according to the statement.
