In a market where co-living beds remain scarce and demand keeps climbing, securing 200 of them off-market is the kind of deal developers dream about. DFI, the pan-European private equity real estate platform, has forward funded a £80m (approximately €93m) gross development value co-living scheme in Kingston upon Thames, acquired through an off-market transaction. London-based developer Viewranks Estates will deliver the project on DFI's behalf under the forward funding agreement.
The site sits beside Kingston Train Station, putting Central London just 30 minutes away, in an area where housing supply has failed to keep pace with a steady influx of young professionals and recent graduates starting their careers. That demand has only strengthened since Unilever opened its new headquarters campus in Kingston Town Centre earlier this year, anchoring the local economy around consumer, professional services and technology employers. Crucially, the scheme already holds full planning permission and Gateway 2 approval, the Building Safety Regulator sign-off that has become one of the most consistent blockers for high-density residential schemes across London since the post-Grenfell reforms. Clearing that hurdle before acquisition materially de-risks the project for DFI and is worth watching as a marker of what separates a deliverable co-living pipeline from stalled ambition in this cycle.
Construction on the eight-storey building is set to begin imminently, delivering 200 en-suite studios let at rents inclusive of bills. Residents will have access to a master-chef style kitchen, ground floor co-working space, a bar and restaurant, a residents' lounge, cinema, fitness studio, communal terrace and games room, all folded into the monthly rent as DFI builds out a bespoke lifestyle brand for the sector.
"This is a compelling, off-market opportunity to invest in a high-demand, undersupplied sector that is still evolving in London, under a defensive deal structure. We are working with best-in-class architects, designers and sector experts to create a flexible, branded residential experience that appeals to young professionals through ample amenities, living and working spaces, at rents that offer a discount to comparable rental housing. With only c. 7,000 co-living beds in the capital, we are bringing forward a high-quality, aspirational asset and one where we see real potential to replicate across the market," said Francesco Orofino, Investment Director and Head of Hospitality at DFI.
The Kingston deal builds on a wider track record in European living sectors. "This latest investment builds on DFI's strong track record of creating institutional-grade living assets across Europe where we focus on assets supported by demand tailwinds, undersupply and operational expertise. This includes Blaekhus, a student accommodation platform comprising c. 1,200 student units, which DFI sold to PATRIZIA in 2022 for €314m, as well as Mylo Living, a Danish flex living platform with a 350-unit asset in Copenhagen," said Gavin Neilan, Founding Partner at DFI.
DFI, which manages over €4bn in assets across offices in London, Munich, Madrid and Luxembourg, was advised on the transaction by Eversheds, Living for Life, Savills, PwC and Quartz, and says it will continue targeting opportunities within close commuting distance of Central London as it expands its co-living platform.
People mentioned:
- Francesco Orofino – Investment Director and Head of Hospitality, DFI
- Gavin Neilan – Founding Partner, DFI
Companies mentioned:
- DFI – Pan-European private equity real estate platform
- Viewranks Estates – London-focused developer delivering the Kingston scheme
- Eversheds – Legal adviser to DFI
- Savills – Property adviser to DFI
- PwC – Adviser to DFI
- Quartz – Adviser to DFI
- PATRIZIA – Acquirer of DFI's Blaekhus student accommodation platform
Get the latest commercial real estate news, investment insights, and property trends from Europe Real Estate, trusted by professionals since 1999.
Sign up for free weekly updates. Join here
