DTZ Investors funds second coliving scheme – targets £1bn

The Collective, Earlsfield.

DTZ Investors is forward funding a £70 million 310-room coliving scheme in in south west London, and plans to invest in up to ten such projects with an end value of £1 billion for its Coliv fund.

The Collective, which is the fund’s property and asset manager, will build and operate the development in Earlsfield in the London Borough of Wandsworth. The scheme is the fund’s second asset. It also forward funded The Collective Harrow, announced last October.

The Collective Earlsfield will provide 35% on-site affordable housing targeted at key workers. More than a quarter of the 120,000 sq ft development will be dedicated to resident amenities to encourage social interaction, including a café, co-working space, events space, a communal dining and kitchen area, cinema room, laundry facilities, shared lounges and a library.

These communal spaces will “help knit the community together and combat loneliness,” according to DTZ Investors’ CEO Chris Cooper.

Making connections with local community

“We launched our co-living fund last year with the aim of providing high quality, flexible and socially responsible housing in London,” Cooper said. “We want to have an impact beyond the four walls of our real estate by connecting with our local communities and promoting better health and well-being for our residents.

Reza Merchant, CEO and founder of The Collective, said: “The co-living asset class is demonstrating its resilience in the context of the COVID-19 pandemic and the current economic climate.”

The development will be funded with a mixture of equity, drawn down from the fund, and debt, which will be provided by alternative asset manager Cheyne Capital.

The fund, which was the world’s first institutional co-living investment vehicle, when it was launched in October 2019, aims to raise total equity commitments of up to £650 million and to acquire, or forward fund, between six and ten co-living assets in London, with a target gross asset value of £1 billion across the life of the fund.