Developer Hub and sustainable impact investor Bridges Fund Management have signed an £88m forward funding deal with Singapore-based developer City Developments to deliver Yardhouse, a mixed-tenure scheme in Wood Lane, W12.
The development will deliver 209 co-living homes and, with Women’s Pioneer Housing, a specialist housing association, a further 60 affordable homes for single women. It will also provide a new HQ for the affordable housing group.
The scheme is Hub and Bridges’ first co-living forward-fund deal, CDL’s first co-living scheme in the UK, and will be the first co-living scheme in the borough of Hammersmith and Fulham.
It replaces 36 existing WPH homes and 30,000 sq of office space.
Hub managing director Damien Sharkey said: “This forward funding deal – Hub’s 12th – will be instrumental to our delivery of this next-gen co-living scheme. Not only does this further strengthen our commitment to innovative and inclusive housing solutions that meet the evolving needs of communities, but it reinforces our confidence in the resilience of the real estate market and the appeal of this emerging asset class.”
Simon Ringer, partner at Bridges Fund Management, added: “This landmark deal reflects the strong demand in London for lower-cost, high-quality co-living space. We have worked extensively with the local community to make sure that Yardhouse caters to local needs – in line with our ongoing commitment to support best-in-class developments in needs-driven sectors. We can’t wait to see this pioneering scheme come to life.”
Sherman Kwek, CDL group chief executive, said: “We are excited to mark the expansion of our UK living sector footprint with our first PRS project in central London. Despite macroeconomic and geopolitical challenges, the UK PRS has proven to be an exceptionally resilient asset class with robust operational performance. Given its prime location at the heart of a burgeoning district, Yardhouse is well-positioned to capitalise on the growth in flexible, professionally managed communal living solutions.”
He added: “This acquisition will boost our portfolio to a total of 4,771 operational and pipeline units in the UK, Japan, Australia and the US, and dovetails with our strategic focus to scale up our global living sector portfolio to enhance our recurring income and augment our fund management aspirations.”
CDL’s UK living portfolio currently comprises 1,857 operational and pipeline units in London, Leeds, Birmingham and Manchester. In addition to its PRS projects, the group has close to 2,400 beds in the purpose-built student accommodation sector.
Yardhouse is the CDL’s first co-living scheme project in the UK and is its fifth PRS project in the UK since 2019.
Hub and Bridges were advised by Knight Frank, Gowling WLG and Archor on the deal.
Image from Hub
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