“With only c. 7,000 co-living beds in the capital, we are bringing forward a high-quality, aspirational asset and one where we see real potential to replicate across the market.”
– Francesco Orofino – DFI
DFI, an independent pan-European private equity real estate platform, has announced the forward funding of an £80 million gross development value, 200-bed co-living development in Kingston upon Thames, London, through an off-market transaction.
London-focused developer Viewranks Estates will deliver the project for DFI under a forward funding agreement.
The project, which has full planning permission and Gateway 2 approval, is located next to Kingston Train Station, a 30-minute train ride away from Central London. The area is experiencing significant undersupply of housing, with strong rental demand from young professionals and students, particularly recent university leavers just starting in their careers and working in London.
Residential demand is supported by a strong local economy in Kingston, led by consumer, professional services and technology sectors, with Unilever having opened its new HQ campus in Kingston Town Centre earlier this year.
Construction of the eight-storey co-living building is expected to start imminently. Once complete it will offer 200 en-suite studios at attractive rents that are inclusive of bills and will benefit from generous amenity spaces.
Residents will have access to a master-chef-style kitchen and ground-floor co-working spaces. Included in the monthly rent is a leisure, catering and entertainment offer with a bar and restaurant, as well as a residents’ lounge, cinema, fitness studio, a communal terrace and a games room.
DFI says it is working to create a bespoke lifestyle brand tailored to the target market and will continue to explore opportunities in this sector, with a focus on key locations within and in close commute to central London.
The investment responds to a growing number of young adults and private renters driving demand for affordable, flexible housing in a market where co-living remains undersupplied, with only c.7,000 operational beds across London.
DFI was advised by Eversheds, Living for Life, Savills, PwC and Quartz.
“This is a compelling, off-market opportunity to invest in a high-demand, undersupplied sector that is still evolving in London, under a defensive deal structure,” Francesco Orofino, investment director and head of hospitality at DFI, said.
“We are working with best-in-class architects, designers and sector experts to create a flexible, branded residential experience that appeals to young professionals through ample amenities, living and working spaces, at rents that offer discount to comparable rental housing.
“With only c. 7,000 co-living beds in the capital, we are bringing forward a high-quality, aspirational asset and one where we see real potential to replicate across the market.”
Gavin Neilan, founding partner at DFI, added: “This latest investment builds on DFI’s strong track record of creating institutional-grade living assets across Europe where we focus on assets supported by demand tailwinds, undersupply and operational expertise.
“This includes Blaekhus, a student accommodation platform comprising c. 1,200 student units, which DFI sold to PATRIZIA in 2022 for €314 million, as well as Mylo Living, a Danish flex living platform with a 350-unit asset in Copenhagen.”
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