Student housing developer Crosslane Group has announced its entry into the co-living market, unveiling two prime developments in London and Mancester as part of a £355 mln (€415 mln) UK development pipeline.
The sites are located in Walthamstow, London and Deansgate, Manchester, and will deliver 366 co-living units over the next two years.
Two further sites have also been secured in London, with another earmarked in Liverpool, Crosslane said. These are set to provide 1,420 units and will enter planning consultation in 2020. In total, the five sites will deliver 1,786 units at a gross development value of £355 mln.
'We have been avidly following urban market trends and the emergence of co-living has presented a prime investment opportunity for us and our clients,' said Mark Hughes, managing director - Crosslane Co-Living.
'We are pleased to now be bringing our first two co-living sites to market and will be working closely with JLL to progress investment conversations,' Hughes added.
According to JLL’s recently published European coliving index, Europe’s co-living sector is expected to triple in size during the next two years to more than 20,000 beds, from 6,480 operational beds to 20,400 by end of 2021.
'In the coming year, we will be extending our pipeline in three new UK city locations and are actively looking for additional sites to meet the growing institutional investment opportunity available in this living asset class,' Hughes said.
Richard Lustigman, director of living capital markets at JLL said: 'We have been working closely with the Crosslane Co-living team for the last 18 months and have seen them strive for the most innovative and disruptive solutions to meet the changing needs of the modern urbanite. Faced with persistent financial and supply pressures, co-living assets offer choice in a market short of options.'