COLIV forward funds The Collective's Earlsfield scheme

George Sell George Sell Uploaded 05 October 2020

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UK: DTZ Investors' London coliving fund COLIV has forward funded a £70 million scheme in south-west London.

The Collective will build and operate the 310 room scheme on Trewint Street in Earlsfield. It 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 COLIV fund seeks to acquire, or forward-fund, between six and 10 purpose-built, large-scale coliving assets, all in the London area with an estimated gross asset value target of £1 billion. DTZ is the investment advisor for the fund, while global co-living firm The Collective is the asset manager and property manager.

The latest deal follows the fund’s first deal a year ago, which involved the forward-funding of The Collective Harrow.

Chris Cooper, CEO at DTZ Investors, 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. The Collective Earlsfield will provide 35 per cent on-site affordable housing targeted at key workers.”

Reza Merchant, CEO and founder of The Collective, said: “We are excited to progress The Collective Earlsfield through to construction in partnership with DTZ Investors under the COLIV fund. We’ve been impressed with the proactive approach taken by Wandsworth Council to unlock the delivery of this project. The co-living asset class is demonstrating its resilience in the context of the COVID-19 pandemic and the current economic climate, and we remain focused on delivering our pipeline of projects in the UK and across continental Europe and the US.”

Richard Howe of Cheyne Capital said: “We are pleased to be supporting this exciting co-living project in Earlsfield, which fits well with our thesis of originating investment opportunities in value-add or development assets in attractive locations, in partnership with high-quality borrowers with whom we can form a long-term relationship. This latest activity by DTZ Investors demonstrates the growing institutional demand for the co-living sector, which we believe offers a compelling risk/reward dynamic for investors today.”

 

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