DTZ Investors is to forward fund a 260 room co-living scheme in Battersea via its dedicated co-living fund.
The Collective, the fund’s property and asset manager, will build and operate the development on Chatfield Road, in the London Borough of Wandsworth.
New affordable homes will be marketed exclusively to local people and key workers first, with nomination rights for the council reserved for subsequent occupants. The Collective Battersea will also include a gym and studio spaces, as well as roof terraces and outdoor spaces providing immediate access to the River Thames.
Chris Cooper, Chief Executive Officer at DTZ Investors, said: “Co-living as a sector has been remarkably resilient during the pandemic. The desire for human connection remains very strong and demand is highest in buildings that combine high quality living spaces with a wide range of communal amenities.
“The acquisition of The Collective Battersea marks another vital step toward fulfilling the investment strategy of our dedicated co-living investment vehicle, which now has a completed GDV of over £200m. Once fully capitalised, the fund’s portfolio of co-living buildings in prime locations across the capital will be home to 3,500 people.”
The Collective Battersea is located just three miles south west of central London, with two rail stations within a 12-minute walk.
Reza Merchant, Chief Executive Officer and founder of The Collective, said: “We’re pleased to close this deal with DTZ Investors and the COLIV fund.
“We’ve seen continued robust enquiries and bookings across our portfolio throughout the pandemic, driven by consumers’ increasing prioritisation of value for money, convenience and human connection in their choice of home. The Collective Battersea will be one of a number of our projects to go into construction in central London in 2021, all offering one-of-a-kind shared spaces, an inspiring events programme, and a vibrant community to call home.”
The Collective Battersea will provide 35% affordable housing, available at discount market rent for people with starting salaries of £22,000 per annum.