Developer Urban Centric has taken a step closer to developing Wales’s first co-living scheme after securing backing from Housing Growth Partnership to buy Knox Court in Cardiff.
Urban Centric has bought the 60,000 sq ft office block, formerly occupied by Legal & General, from Maya Capital, and aims to replace it with a 203-home development.
The developer acquired the premises last month for £6.2m, according to EG Radius. L&G moved out of the offices in December 2023 following the exercise of a mutual break option.
The social impact investor, which is backed by Lloyds, has committed £7.6m to support the purchase, the remainder of the equity above the acquisition price going towards the development costs. It represents HGP’s first investment in the co-living sector. Initial site work is expected to commence in Q2 once formal planning consent has been secured, with practical completion expected by Q4 2025.
It also marks the first transaction between HGP and Urban Centric.
Mike Murphy, investment director at HGP, said: “This first investment alongside Urban Centric highlights the ever-growing significance of equity funding in creating, regenerating and delivering vibrant communities and homes that meet an unmet demand for housing in key regional UK cities.
“It also underscores our team’s capability in executing complex equity transactions across the UK living sector. Co-living in particular is a nascent but fast-growing product, as people prioritise city centre living and the infrastructure and social advantages it brings.”
Tom Larkin, acquisitions director at Urban Centric, said: “Cardiff has all the right credentials to underpin a thriving community aimed at a wide spectrum of occupiers, from mature students and young professionals through to contract workers staying for long periods of time.
“It is highly likely that this use class will continue to grow in Cardiff, and we are in a fortunate position to set the tone for a best-in-class product that will stand the test of time, while meeting the needs of an evolving population.”
Image from Housing Growth Partnership
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