Alternative living developer and operator Re:shape has exchanged contracts on three co-living and PBSA development sites in London and Watford, creating a 1,850-bed, £885m GDV pipeline.
The firm, led by founders and The Collective alumni Jermaine Browne (pictured above, right) and Charlie Gayner (left), has agreed to buy sites in Woolwich, SE18, Bethnal Green, E1, and Watford in recent weeks. The sites were acquired with backing from a number of UK-based family offices.
The acquisitions form part of the company’s bid to amass a £1bn development pipeline. The business is seeking an institutional partner to forward-fund the schemes.
Among the new portfolio is a three-acre brownfield development site on Macbean Street in Woolwich. The developer intends to deliver around 450 co-living beds, 750 student beds and more than 100 affordable homes at the location.
The Woolwich site was previously controlled by L&G, with planning permission refused by Greenwich Council in 2022.
In Bethnal Green, the developer has agreed to buy a site with scope for 220 co-living beds, while the Watford location has potential for 300. Both were purchased from non-real estate private businesses and high-net-worth individuals.
Re:shape said the acquisitions mark a “strategic evolution” for the business, which has pivoted from repositioning hotel assets to seizing new ground-up development opportunities in the South East. The strategy is underpinned by a long-term view that liquidity will return to the market for forward funds, as interest rates fall in the coming years.
Gayner said: “We are witnessing a surge of new capital, in particular core funds, investing in co-living opportunities in the UK and across Europe due to the attractive income profile with inflation-linked rents.
“With PBSA becoming quite a saturated space and BTR facing viability issues in the UK, funds are actively seeking to diversify their living portfolios.
“As we begin our search for a programmatic joint venture funding partner, we have had positive initial conversations already with institutions that recognise the opportunity we have and share our passion to deliver a sustainable, ESG-focused living platform which is committed to building high-quality assets in well-connected locations for our target demographic of working professionals of all age groups.”
Browne and Gayner founded Re:shape in 2020. Its co-living brand, Ark, took over the management of a former Collective development in Canary Wharf, E14, at the start of this year. The scheme, which has 705 beds, was acquired by Crosstree Real Estate Partners in 2022.
The company also joined forces with Crosstree in that same year on converting a hotel in Wembley, north-west London, into a co-living scheme. This is also trading under the Ark brand.
Browne said: “The operational success of the 1,000-plus-bed Ark co-living platform, showcased in the initial proof of concept, Wembley Ark, has instilled confidence with local planning departments, politicians and communities on the positive and important role that second-generation co-living can play in addressing today’s housing crisis in the UK.
“It also provides us with the confidence to now launch our second alternative living platform that is underpinned by a heritage-first approach, pioneering social impact initiatives and traditional affordable housing solutions.”
Photo © Re:shape
Send feedback to Pui-Guan Man
Follow Estates Gazette
