Regional sites in Crosslane’s £355m co-living pipeline
The developer has entered the co-living market with two sites in Liverpool and Manchester coming forward as part of a £355m pipeline.
Its Manchester site, which is on an undisclosed location on Deansgate, is the first in its pipeline along with another in Walthamstow, London. Between the pair, 366 co-living units are set to be brought to the market over the next two years.
A site in Liverpool is expected to follow and an additional two in London, which together will create 1,420 co-living units. Initial plans are expected to be shared for these in 2020.
Together, these five sites will deliver almost 1,800 co-living units and have a gross development value of £355m.
According to Crosslane, the move into co-living from the student accommodation sector is “a natural evolution” and has come from “rising demand from students for more flexible and convenient living space, converged with similar pressures from the growing urban young professionals’ market.”
According to JLL’s recently published European Co-living 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 the end of 2021.
Mark Hughes, managing director at Crosslane Co-Living, said: “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. 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.”
“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.”
Richard Lustigman, director of living capital markets, co-living, a 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.”