Developer Southern Grove has unveiled plans to enter the co-living and build-to-rent sectors with the launch of two new businesses.
The firm has revealed a new co-living division, Evolution, which is to offer “superior” accommodation with a focus on health and wellbeing and will likely include amenities such as gyms, bars, private dining and cinema rooms.
Southern Grove said co-living developments, which also usually include a workspace provision, were “perfect” given the likelihood that even after the pandemic subsides more people will work from home.
It added that co-living is also “more economical” for people compared to renting an entire flat.
The business is also entering the BTR sector with its newly created brand Mast.
Southern Grove said entering these sectors was a natural extension to its student accommodation business, Future Generation, and would be led by its head of hospitality Tim Barrett.
The firm added that it had already identified a number of sites around the UK which could deliver around 1,000 units for each of the new divisions in 2021 and 2022.
Andrew Southern, chairman of Southern Grove, said: “Entering the BTR and co-living sectors means Southern Grove will have a presence across all the main residential property classes, and a new focus on two of the fastest growing products in the market.
“These two sectors are widely expected to outperform other asset classes over the next few years and we are determined to replicate the success we have enjoyed in the student accommodation sector, where we have supplied a disruptive high-end product and a value proposition that ensures our revenue is protected across economic cycles.
“BTR has proved an attractive way of investing in the UK in recent years and demand continues to grow as attitudes change. It’s no longer always the case that those who rent have no other choice. For many, it is a lifestyle decision or a choice based on life and family planning.
“Co-living, too, is increasing in popularity. While it is a model that has been around for a while in the student accommodation sector, where we are strong, it is only more recently that it has started to enter the mainstream. Co-living provides a higher level of comfort and greater social interaction at relatively low cost. It will also make it easier for those residents who aspire to own their own home to save up for a deposit.”
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