Moorfield Group, the UK-focused real estate fund manager, on behalf of its Moorfield Real Estate Fund IV, has agreed to forward fund an 81 bed best-in-class co-living scheme near Ealing Broadway, West London, for GBP21 million. It represents Moorfield’s entry into the fast-growing London co-living sector, which is expected to be a beneficiary of demand from young professionals looking for affordable, high quality and flexible accommodation.
The transaction is the first investment by a joint venture between Moorfield and Funding House (the “Zennor” partnership), offering experienced developers in the UK ‘Living’ sector the opportunity to enter into forward funding agreements with an experienced and well-respected investment partner. A co-investment mechanism permits developers to generate additional returns through the increased value of assets anticipated following operational stabilisation.
Having acquired the site in November 2019, subject to planning, and subsequently secured consent for 81 units, Urbane London, the specialist, London-focused residential developer, will act as the development manager.
The Squire & Partners designed scheme is expected to be ready for its first residents in late 2023. It will offer 81 high quality en-suite studios across a range of unit types, alongside 1,800 sq ft of amenity space including a south facing roof terrace, co-working space, kitchens and storage for 83 bikes. The BREEAM Very Good scheme has strong environmental and social credentials including an air source heat pump, photovoltaic panels, no gas services, a biophilic design, and a private rooftop for residents to aid wellbeing.
Source: moorfield.com on the 3rd of February