Investec Real Estate has arranged a £55m loan for Scape Group, to fund the development and stabilisation of a best-in-class co-living scheme in Walthamstow, London.

Scape has secured consent for the construction of the 321-bed co-living scheme at 1 Blackhorse Lane, East London, which will launch under their Living brand, Morro. Due to complete in 2025, the Zone 3 scheme will feature shared residential amenity spaces; a ground floor public café and retail unit; and a purpose-built music and comedy venue.

Hollie Sleigh at Investec Real Estate said: “With demand for high quality, well-connected rental accommodation in London continuing to outstrip supply, the appeal of co-living as an asset class to both investors and residents is pushing this nascent sector further into the mainstream. Our most recent Future Living report echoed this sentiment by highlighting the positive outlook for and expected investment activity into co-living. 

“This Blackhorse Lane transaction is an exciting expansion of our exposure to the co-living space, which we believe is very underinvested, and will enable Scape Group to grow and enhance its portfolio. This is our sixth loan with Scape Group, whose track record in sourcing and delivering highly desirable and extremely well managed PBSA and living assets speaks for itself. We look forward to seeing the development progress and continuing to work together.” 

The site benefits from excellent transport connectivity with access to both the London Underground Victoria Line and Overground networks via Blackhorse Road station located immediately opposite.