The Collective appoints bank to explore sale options

George Sell George Sell Uploaded 17 June 2021

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UK: Coliving developer and operator The Collective is considering a full or partial sale of the business.

According to a report in Bloomberg "people familiar with the process" said that the privately-held company, which has properties in London and New York, has appointed Credit Suisse Group AG to conduct a strategic review which may lead to a full or partial sale.

The Collective has 1,623 operating units and a development pipeline of 6,590 units across the UK, US and Germany.

The article didn't place a potential value on the company, which has a £140 million pound loan from lenders including Deutsche Bank AG, with terms that have twice been amended since the onset of the pandemic.

Founded in 2010, the company last month amended its management structure, appointing Simon Koster as CEO, while founder Reza Merchant became chairman.

Neither The Collective or Credit Suisse commented on the report.

 


Editor's Comment

Hot on the heels of Common's acquisition of Starcity's coliving portfolio comes the news that The Collective is considering a sale. The coliving sector is ripe for a wave of M&A activity and it looks like the drawn-out tail of the pandemic could be the catalyst. The Collective has a very impressive development pipeline, particularly in London, but trading at reduced levels for an extended period is bound to put stress on the the day-to-day running of any business, even the European poster child for coliving.

The Collective has got some serious backing from the DTZ COLIV fund, which is forward funding several of its London schemes. COLIV, in turn, has two of the UK's largest pension funds behind it and was an institutional pioneer in the sector. 

If The Collective does decide to sell up, it won't be short of interested buyers.

 

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