Housing Growth Partnership, the Lloyds-backed equity investor, has committed c. £7.6m of equity which will support Urban Centric’s acquisition of a former L&G office building in Cardiff, Wales, which it intends to transform into what will be Wales’ first institutional grade co-living scheme. 

Occupying a prime city centre location in close proximity to the central retailing area and Queen Street Rail Station, the scheme will see the building’s existing core retained and converted into 203 studio apartments, designed to appeal to the next generation of residents looking for high quality but affordable rent in the undersupplied city centre.

Mike Murphy, Investment Director at HGP, said: “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.”  

Initial site work is expected to commence in Q2 once formal planning has been secured, with practical completion expected by Q4 2025.

Tom Larkin, Acquisitions Director at Urban Centric, said: “We are very excited to join forces with HGP and deliver Wales' first institutional grade co-living scheme. Cardiff has all the right credentials to underpin a thriving community aimed at a wide spectrum of occupiers, from mature students and young professionals through to contract workers staying for long periods of time.”