Scape secures £55m loan for Walthamstow scheme

Scape Group has secured a £55m loan from Investec Real Estate for a 321-bedroom co-living scheme in Walthamstow, east London. Consent has been granted for the development at 1 Blackhorse Lane, E17, which will launch under its Morro brand. It is targeting EPC A and BREEAM Excellent ratings. Work is set to complete in 2025. Features will include shared residential amenity spaces, a ground-floor public café and retail space, and a music and comedy venue. The transaction is Investec’s third facility in the sector. The lender cited a number of structural tailwinds, including home ownership unaffordability and hybrid working patterns. Investec’s previous co-living exposure includes providing a £53.5m senior debt facility to a joint venture between Scape Group and HG Construction in 2021 to fund the development of 403 purpose built Scape student accommodation beds, and 113 Morro living spaces in Guildford. Hollie Sleigh of Investec Real Estate said: “With demand for high-quality, well-connected rental accommodation in London continuing to outstrip supply, the appeal of co-living as an asset class to both investors and residents is pushing this nascent sector further into the mainstream.” She added: “This Blackhorse Lane transaction is an exciting expansion of our exposure to the co-living space,  which we believe is very underinvested, and will  enable Scape Group to grow and enhance its portfolio.” Adam Brockley, founder and chief development officer at Scape Group, said: “With our growing pipeline of Morro and Scape PBSA developments, we look forward to continuing our well-established relationships with both Investec and APG. Our growth strategy remains as ambitious as ever – we are actively seeking new opportunities in the PBSA and living spaces.”