DTZ Investors co-living fund (COLIV) charity partner, Harrow Association of Disabled people [HAD], celebrates its 50th birthday!

4th July 2022

DTZ Investors co-living fund (COLIV) charity partner, Harrow Association of Disabled people [HAD], celebrates its 50th birthday!

Harrow Association of Disabled People marks its 50th birthday with an event at Folk at The Palm House, Harrow.

The organisation has been operational since 1972. Over the past 50 years, it has helped thousands of disabled people each year access information, advice, and support, providing high-quality services that focus on delivering disabled people equal opportunities and the right to live independently.

DTZ Investors co-living fund (COLIV) launched Folk and its first co-living site, The Palm House in Harrow, North London, earlier this year. Working with Halcyon Development Partners, we selected HAD as Folks first charity partner soon after.

COLIV Investment Director Chris Saunders said, “we partnered with HAD as part of our community engagement programme which is funded through our commitment to reinvest 1% of operating profits back into the community”

“When we heard about HAD’s plans to mark their 50th year with a special event, we knew we could help. Over 100 people, including Mayor of Harrow, Cllr Ghazanfar Ali, were welcomed through the doors of The Palm House to celebrate this incredible organisation, and we’re pleased to say it was a great success!”

A temporary information centre was erected in the site’s co-working space where guests could obtain the latest information about impairment services and entitlements. Speeches followed, gathering a large and engaged audience. Gladys Janes MBE guided the audience through HAD’s rich history. With 50 years of service, she was undeniably the most qualified person to deliver it! But perhaps most memorable of all was hearing the first-hand account from a member attending their first public event in two years, who, before being directed to HAD’s services, told a raw tale of barely surviving through lockdown that many people would find relatable. A humbling account that reminds us why this partnership is so important.

Louise Weldon, Chief Executive Officer at HAD, said: “It has been wonderful to form a relationship with DTZ Investors, Folk Co-living, and Halcyon Development Partners so that we can collaboratively work together to support disabled people within Harrow. Becoming a dedicated partner of the Community Investment Programme at The Palm House in Harrow has given HAD (Harrow Association of Disabled People) use of meeting rooms, space for staff members to work and an opportunity to hold events in the property throughout the year, which will help us enormously. We do not have any meeting rooms so this partnership will be invaluable. In return we are looking forward to providing workshops, training, and information on disability issues. In the longer term we hope that residents of The Palm House will gain more of an understanding about the barriers disabled people face in society”

The Palm House will offer residents the chance to volunteer for opportunities with the charity, and several residents were on hand at HAD’s 50th event to help the sites first-class café and bar team in Mule serve food and drinks to guests as they enjoyed a full day’s programme that included an evening of live music and entertainment.

For media enquiries please contact:

Sarah McClarron, DTZ Investors

0203 349 0218

sarah.mcclarron@dtzinvestors.com



DTZ Investors Co-Living Fund (COLIV) launches Folk Co-living brand with a £55 million development in Harrow

16th March 2022

DTZ Investors Co-Living Fund (COLIV) launches Folk Co-living brand with a £55 million development in Harrow

DTZ Investors has announced the launch of Folk, a new co-living brand, with the opening of The Palm House in Harrow and Wealdstone, North London.

The Palm House is a 222 studio amenity-rich co-living building designed by industry-leading architects Hawkins Brown and interior masters Atypical Practice. Using extensive in-market research, Folk’s co-living spaces have been created to erase the pain points of traditional renting and provide a better resident experience. The Palm House has been designed around Folk’s key pillars of community and connection, providing shared spaces that encourage social interaction and the formation of new friendships and relationships. The brand will give its residents the opportunity to enjoy new experiences every day through a varied programme of events, ranging from morning yoga to evening hackathons.

COLIV Investment Director Chris Saunders said, “We are delighted to launch Folk’s first co-living property to the market, providing an aspirational living experience at an affordable rent.  As well as being a great place for residents to live and work, the extensive amenities the building provides will also have a positive impact on the local community as we look to work with groups in the Harrow area.”

Located in Zone 5, a 4-minute walk from Harrow and Wealdstone station, residents can reach Euston in as few as 12 minutes. The Palm House is a home for “everyday folk who want more than every day renting”. Among its many features, the site boasts 27,000 sq ft of communal space, including a gym and fitness studio, an open-plan MasterChef style kitchen, a co-working space with meeting rooms and conference call facilities, two outdoor terraces, a screening room, a games room, lounge and an onsite bar and restaurant.

The Palm House’s impressive coworking space is open to residents and the local community. Set across 4,000 square feet, the area boasts 70 desks, cosy break out space, meeting rooms,quiet desk booths and conference call facilities. Interior designers at Atypical Practice used salutogenic design principles that make coworking feel like working from home in the company of friends.

The eight-story, 87,000 sq ft building, developed by Halcyon Development Partners, aligns with DTZ Investor’s commitment to reaching net-zero across its portfolio by 2040 and has achieved a BREEAM Excellent accreditation. The Palm House is a 100% renewable energy-powered building that utilises new systems and technologies to manage energy, air, and water.

COLIV is serious about positively impacting the local community. Folk buildings will commit 1% of net income to local charities and community partner initiatives. Folk has already formed a partnership with the Harrow Association for Disabled People to support the local charity.

Folk has also partnered with Mule to debut their first London bar and eatery. Mule will provide a public-facing dining experience, serving carefully sourced quality ingredients from breakfast in the morning all the way through to cocktails in the evening

Residents also benefit from free access to an events programme, ranging from cooking classes to film clubs. All Folk buildings will also have a budget set aside for resident-led activities and events.

Folk will be launching two further co-living developments in Earlsfield and Battersea. Earlsfield is a 315 studio co-living scheme, with 35% onsite Affordable Housing. The scheme will open in October 2022. Folk will then open a 270 studio scheme in Battersea, with 31% onsite Affordable Housing in Q1 2023.

For media enquiries please contact:

Sarah McClarron, DTZ Investors

0203 349 0218

sarah.mcclarron@dtzinvestors.com



DTZ Investors Forward Funds 260-Room Battersea Co-living Scheme

3rd February 2021

DTZ Investors Forward Funds 260-Room Battersea Co-living Scheme

DTZ Investors has forward funded a 260+ room scheme in Battersea for its co-living fund.

The Collective, which is the fund’s property and asset manager, will build and operate the development on Chatfield Road, in the London Borough of Wandsworth. When completed it will be the third asset in the fund following the forward funding of The Collective Harrow (announced October 2019) and The Collective Earlsfield (announced October 2020). The Collective Battersea will provide 35% affordable housing, available at discount market rent for people with starting salaries of £22,000 per annum.

Chris Cooper, Chief Executive Officer at DTZ Investors, said:Co-living as a sector has been remarkably resilient during the pandemic. The desire for human connection remains very strong and demand is highest in buildings that combine high quality living spaces with a wide range of communal amenities.

“The acquisition of The Collective Battersea marks another vital step toward fulfilling the investment strategy of our dedicated co-living investment vehicle, which now has a completed GDV of over £200m. Once fully capitalised, the fund’s portfolio of co-living buildings in prime locations across the capital will be home to 3,500 people. As well as providing shared spaces for people to spend time with one another and helping to tackle the loneliness problem, we are giving back through The Collective and the fund’s Community Investment Programme to support local social, environmental and charitable projects.”

Reza Merchant, Chief Executive Officer and founder of The Collective, said: “We’re pleased to close this deal with DTZ Investors and the COLIV fund – a further demonstration of institutional demand for our vertically integrated co-living model. We strongly believe consumer demand for our product to be counter-cyclical, and we’re pleased to see this validated in the current challenging economic climate.

“We’ve seen continued robust enquiries and bookings across our portfolio throughout the pandemic, driven by consumers’ increasing prioritisation of value for money, convenience and human connection in their choice of home. The Collective Battersea will be one of a number of our projects to go into construction in central London in 2021, all offering one-of-a-kind shared spaces, an inspiring events programme, and a vibrant community to call home. Our mission is to build a global network of spaces that enable people to lead more fulfilling lives and positively impact the neighbourhoods they’re part of, and this highly sustainable development with subsidised rents for local people is another big step on our journey.”

Strong alignment to ESG objectives

The fund is committed to delivering a sustainable housing solution that fosters diverse and supportive communities and promotes health and well-being, whilst delivering value for money for co-living residents.

The Collective Battersea will achieve BREEAM Excellent certification (aligned with the other buildings in the fund) reflecting the ambition to contribute to sustainable housing solutions for London.

The new affordable homes will be marketed exclusively to local people and key workers first, with nomination rights for the council reserved for subsequent occupants. The Collective Battersea will also include a gym and studio spaces, which will facilitate events based around health and wellbeing, that can be utilised by the wider community, as well as roof terraces, and outdoor spaces providing immediate access to the River Thames.

DTZ Investors’ and The Collective’s Community Investment Programme is already up-and-running, awarding grants to initiatives working to end homelessness, increase social mobility and create inclusive communities. In 2020 the fund awarded £10,000 to Harrow Mencap to pay for their Home Online Activities Network for a period of three months.

Location

The Collective Battersea is located just three miles south west of central London, with excellent rail links, with two stations within a 12-minute walk. Battersea itself benefits from a wide range of amenities, from culture and arts centres to a wide selection of restaurants and cafes. Convenience stores and a medical centre are in close proximity, as are a range of green spaces including Battersea Park, Clapham Common and Wandsworth Common.

COLIV momentum

This latest deal follows the launch of the fund, the world’s first institutional co-living investment vehicle, in October 2019 by DTZ Investors. It aims to raise total equity commitments of up to £650 million and to acquire, or forward fund, between six and ten co-living assets in London, with a target gross asset value of £1 billion across the life of the fund. In July 2020 DTZ Investors announced that Merseyside Pension fund had joined other investors, including the Strathclyde Pension Fund, in investing.

For media enquiries please contact:

DTZ Investors

Jeremy Durrant, Jamie Till

07792 918 648 / 07581 480 083

dtzinvestors@instinctif.com


About COLIV

COLIV is the world’s first fund dedicated solely to the co-living sector. The fund, which was set-up by DTZ Investors (DTZI) in partnership with The Collective, is seeking to acquire, or forward-fund, between six and ten purpose-built, large-scale co-living assets, all in the London area with an estimated gross asset value target of £1 billion. DTZI is the investment advisor for the fund, while global co-living pioneer The Collective is the asset manager and property manager. Alongside the investment opportunity, a guiding principle of the fund is to create broader positive impact. This includes making a positive impact toresidents; the neighbourhoods invested in and more widely on London’s housing shortage. Residentswill benefit from the strong sense of community, and management focused on wellbeing and personal development. COLIV will also help cohesion by opening its buildings for use by local community groups. A portion of the fund’s rental income will also help local community initiatives which have aligned social objectives. For more information, visit www.colivfund.com.

About DTZ Investors

DTZ Investors (DTZI) is a specialist European Real Estate Fund Manager, part of the Cushman & Wakefield Group. The business was established in 1968 in the UK and expanded into Continental Europe in 1999. DTZI’s team of c.100 professionals manage €15bn worth of real estate (June 2020) in Europe. The business manages assets for a range of domestic and international investors, including pension funds, insurance companies and private equity funds. DTZI is a full-service offering fund manager for discretionary and advisory accounts with a range of exposures from core to opportunistic risk profiles. DTZI advises clients on the full range of potential exposures to the asset class, including direct property, unlisted property funds and listed securities (REITs), with experience across both traditional real estate (retail, office, industrial) and alternative sectors (healthcare, student housing, leisure, residential). DTZI has secured 15 independent performance awards from IPD in the last 17 years. For more information, visit: www.dtzinvestors.com

About Cheyne Capital

Founded in 2000, Cheyne Capital is a London-based alternative investment fund manager.  Cheyne is known for its innovative approach and has been early and successful at delivering value to investors from important dislocations in the market place.  With an investment philosophy grounded in rigorous fundamental analysis, the firm’s areas of expertise are Real Estate Debt, Impact Real Estate, Investment-Grade Credit, Strategic Value Credit and Equity-Linked investing.

In real estate specifically, Cheyne has provided financing solutions since 2009 and now manages approximately £3 billion of assets across direct real estate lending and securitised real estate debt in Europe, as well as equity investments in UK affordable housing and German multi-family assets.  Within real estate credit, Cheyne seeks to provide specialised non-bank loans to borrowers in select European markets, with a flexible approach that enables it to invest into all parts of the capital structure.  The group has a strong track record in origination, structuring, execution, realisations and workouts, having committed £4.4 billion of capital across 94 private credit deals since the inception of CRECH, the firm’s direct real estate lending programme in 2011. https://www.cheynecapital.com/


DTZ Investors Co-Living Fund secures £32m development finance for Harrow site

18th November 2020

DTZ Investors Co-Living Fund secures £32m development finance for Harrow site

The DTZ Investors Co-Living Fund (COLIV) has entered into a £32m development facility, representing 65% Finance to Cost, to construct a 222-unit co-living development in Harrow. Finance has been structured on a Shari’ah compliant basis and is provided 50/50 by Bank of London and The Middle East (‘BLME’) and Bank ABC in London. CBRE’s Debt & Structured Finance team, part of CBRE Capital Advisors, acted as sole debt advisor to DTZ Investors.

Launched in October 2019, COLIV is the first dedicated co-living fund in the UK, launched in partnership with the world’s leading co-living developer and operator, The Collective. The development in Harrow was the seed asset in a planned portfolio of best-in-class, large-scale co-living assets with a target gross asset value of £1 billion. COLIV is also onsite constructing a 310-unit co-living scheme in Earlsfield.

Upon completion in Q4 2021, the 87,000 sq ft development will be operated by The Collective, and will benefit from 27,000 sq ft of communal amenity space, including a gym, cinema room, library, communal kitchen, laundry room, games room, roof terrace, a restaurant and co-working space.

Chris Cooper, CEO of DTZ Investors commented: ‘We are delighted to be working with BLME and Bank ABC on the recapitalisation of COLIV’s development project in Harrow. This commitment from both banks is another demonstration of the strong investor appetite to access the rapidly evolving co-living sector. Construction is progressing well onsite, having just topped-out the 8 storey frame, meaning we are now less than 12 months from opening the doors. Plans are well afoot for delivering an affordable housing solution that will focus on building inclusive communities that focus on the health and wellbeing of our members”.

Paul De Croos, Head of Real Estate Finance at BLME, commented: ‘We are pleased to be working with DTZ Investors and Bank ABC to see this exciting project to completion. Co-Living represents an important new phase of development in the real estate market. For BLME, this is a unique opportunity to support a forward-looking, high quality community accommodation project that is focused on creating solutions to the challenges faced by a generation of younger renters.’

Keith Leach, Head of UK Real Estate Finance at Bank ABC, commented: “Bank ABC is excited to join BLME in working alongside DTZ Investors to deliver the COLIV Fund’s first development project. The Co-Living sector is a developing market, offering modern cost effective accommodation with a range of amenities to suit the lifestyles of young renters. For the Bank, this is a great opportunity to work with DTZ investors, who are highly experienced real estate investors and The Collective who are experienced operators at the forefront of this growing sector.”

Paul Coates, Head of Debt & Structured Finance UK & EMEA, CBRE commented: “The need for attractive and community-led accommodation has been a growing trend for younger generations moving to urban locations. Financiers are increasingly recognising the growing opportunities in the sector as a result of these structural changes and are demonstrating competition to finance best-in-class assets. We are delighted to close the development facility for COLIV and would like to congratulate all involved, including BLME and Bank ABC for getting this forward funding development facility across the line.”

In 2019, CBRE advised on over €6bn of debt transactions across EMEA. This represents the team’s first financing of a co-living asset pipeline at a time when the sector is developing significant interest from investors, operators and occupiers.

For media enquiries please contact:

DTZ Investors

Kate Fearnley

02033490224

kate.fearnley@dtzinvestors.com


About COLIV

COLIV is the world’s first fund dedicated solely to the co-living sector. The fund, which was set-up by DTZ Investors (DTZI) in partnership with The Collective, is seeking to acquire, or forward-fund, between six and ten purpose-built, large-scale co-living assets, all in the London area with an estimated gross asset value target of £1 billion. DTZI is the investment advisor for the fund, while global co-living pioneer The Collective is the asset manager and property manager. Alongside the investment opportunity, a guiding principle of the fund is to create broader positive impact. This includes making a positive impact toresidents; the neighbourhoods invested in and more widely on London’s housing shortage. Residentswill benefit from the strong sense of community, and management focused on wellbeing and personal development. COLIV will also help cohesion by opening its buildings for use by local community groups. A portion of the fund’s rental income will also help local community initiatives which have aligned social objectives. For more information, visit www.colivfund.com.

About DTZ Investors

DTZ Investors (DTZI) is a specialist European Real Estate Fund Manager, part of the Cushman & Wakefield Group. The business was established in 1968 in the UK and expanded into Continental Europe in 1999. DTZI’s team of c.100 professionals manage €15bn worth of real estate (June 2020) in Europe. The business manages assets for a range of domestic and international investors, including pension funds, insurance companies and private equity funds. DTZI is a full-service offering fund manager for discretionary and advisory accounts with a range of exposures from core to opportunistic risk profiles. DTZI advises clients on the full range of potential exposures to the asset class, including direct property, unlisted property funds and listed securities (REITs), with experience across both traditional real estate (retail, office, industrial) and alternative sectors (healthcare, student housing, leisure, residential). DTZI has secured 15 independent performance awards from IPD in the last 17 years. For more information, visit: www.dtzinvestors.com


DTZ Investors forward funds £70 million for Earlsfield co-living scheme

5th October 2020

DTZ Investors forward funds £70 million for Earlsfield co-living scheme

DTZ Investors has forward funded a 310 room scheme in Earlsfield for its co-living fund, in a deal requiring c.£70 million of total investment.

The Collective, which is the fund’s property and asset manager, will build-out and operate the development on Trewint Street, in the London Borough of Wandsworth. When completed it will be the second asset in the fund following the forward-funding of The Collective Harrow, which was announced when the fund launched in October last year.

Chris Cooper, Chief Executive Officer at DTZ Investors, said: “We launched our co-living fund last year with the aim of providing high quality, flexible and socially responsible housing in London. The development we are announcing today at Trewint Street in Earlsfield is a fine example of that aim.”

“We want to have an impact beyond the four walls of our real estate by connecting with our local communities and promoting better health and well-being for our residents. The Collective Earlsfield will provide 35% on-site affordable housing targeted at key workers. The extensive indoor and outdoor communal spaces help to knit the community together and combat loneliness. A bespoke Community Investment Plan has been agreed with The Collective and the Local Authority. Together, we will work with local charities to give back to the causes that matter most to the community.”

Reza Merchant, Chief Executive Officer and founder of The Collective, said: “We are excited to progress The Collective Earlsfield through to construction in partnership with DTZ Investors under the COLIV fund. We’ve been impressed with the proactive approach taken by Wandsworth Council to unlock the delivery of this project. The co-living asset class is demonstrating its resilience in the context of the COVID-19 pandemic and the current economic climate, and we remain focused on delivering our pipeline of projects in the UK and across continental Europe and the US.”  

The development will be funded with a mixture of equity, drawn down from the fund, and debt, which will be provided by alternative asset manager Cheyne Capital.

Richard Howe of Cheyne Capital comments:  “We are pleased to be supporting this exciting co-living project in Earlsfield, which fits well with our thesis of originating investment opportunities in value-add or development assets in attractive locations, in partnership with high-quality borrowers with whom we can form a long-term relationship. This latest activity by DTZ Investors demonstrates the growing institutional demand for the co-living sector, which we believe offers a compelling risk/reward dynamic for investors today.”

Strong alignment to ESG objectives

The fund is committed to achieving sustainable housing solutions, which foster a diverse and supportive community, promoting health and well-being – whilst delivering value for money for co-living residents.

The Collective Earlsfield will achieve BREEAM Excellent certification, reflecting its ambition to contribute to sustainable housing solutions for London. More than a quarter of the 120,000 sq ft development will be dedicated to resident amenities to encourage social interaction, including a café, co-working space, events space, a communal dining and kitchen area, cinema room, laundry facilities, shared lounges and a library. Outdoor spaces adjacent to the River Wandle will encourage residents to spend more time outside, and a gym and studio space will facilitate health and well-being focused events. 35% of the rooms will be affordable housing at discount market rent, with five rooms reserved for young people leaving foster care in the borough at significant discounts to local market rents.

A Community Investment Plan led by The Collective will also be put in place during the development period which will identify a number of charities and social groups in the local area that the fund will work with to help resolve issues that are important to the local community.

Location

The Collective Earlsfield is a less than five minutes’ walk from Earlsfield Station, which provides mainline trains into London Waterloo in approximately 13 minutes. The adjacent River Wandle and Wandle Trail is a cycle and pedestrian only route that follows the River Wandle from its mouth at the River Thames in Wandsworth, through three boroughs, to Croydon.

COLIV momentum

This latest deal follows the launch of the fund, the world’s first institutional co-living investment vehicle, in October 2019, by DTZ Investors. It aims to raise total equity commitments of up to £650 million and to acquire, or forward fund, between six and ten co-living assets in London, with a target gross asset value of £1 billion across the life of the fund. The first acquisition was The Collective Harrow in Q4 last year. In July 2020 DTZ Investors announced that Merseyside Pension fund had joined other investors, including the Strathclyde Pension Fund, in investing.

Building on this momentum, the fund is targeting further deals before the end of the year.

 

For media enquiries please contact:

DTZ Investors

Jeremy Durrant, Jamie Till

07792 918 648 / 07581 480 083

dtzinvestors@instinctif.com


About COLIV

COLIV is the world’s first fund dedicated solely to the co-living sector. The fund, which was set-up by DTZ Investors (DTZI) in partnership with The Collective, is seeking to acquire, or forward-fund, between six and ten purpose-built, large-scale co-living assets, all in the London area with an estimated gross asset value target of £1 billion. DTZI is the investment advisor for the fund, while global co-living pioneer The Collective is the asset manager and property manager. Alongside the investment opportunity, a guiding principle of the fund is to create broader positive impact. This includes making a positive impact toresidents; the neighbourhoods invested in and more widely on London’s housing shortage. Residentswill benefit from the strong sense of community, and management focused on wellbeing and personal development. COLIV will also help cohesion by opening its buildings for use by local community groups. A portion of the fund’s rental income will also help local community initiatives which have aligned social objectives. For more information, visit www.colivfund.com.

About DTZ Investors

DTZ Investors (DTZI) is a specialist European Real Estate Fund Manager, part of the Cushman & Wakefield Group. The business was established in 1968 in the UK and expanded into Continental Europe in 1999. DTZI’s team of c.100 professionals manage €15bn worth of real estate (June 2020) in Europe. The business manages assets for a range of domestic and international investors, including pension funds, insurance companies and private equity funds. DTZI is a full-service offering fund manager for discretionary and advisory accounts with a range of exposures from core to opportunistic risk profiles. DTZI advises clients on the full range of potential exposures to the asset class, including direct property, unlisted property funds and listed securities (REITs), with experience across both traditional real estate (retail, office, industrial) and alternative sectors (healthcare, student housing, leisure, residential). DTZI has secured 15 independent performance awards from IPD in the last 17 years. For more information, visit: www.dtzinvestors.com

About Cheyne Capital

Founded in 2000, Cheyne Capital is a London-based alternative investment fund manager.  Cheyne is known for its innovative approach and has been early and successful at delivering value to investors from important dislocations in the market place.  With an investment philosophy grounded in rigorous fundamental analysis, the firm’s areas of expertise are Real Estate Debt, Impact Real Estate, Investment-Grade Credit, Strategic Value Credit and Equity-Linked investing.

In real estate specifically, Cheyne has provided financing solutions since 2009 and now manages approximately £3 billion of assets across direct real estate lending and securitised real estate debt in Europe, as well as equity investments in UK affordable housing and German multi-family assets.  Within real estate credit, Cheyne seeks to provide specialised non-bank loans to borrowers in select European markets, with a flexible approach that enables it to invest into all parts of the capital structure.  The group has a strong track record in origination, structuring, execution, realisations and workouts, having committed £4.4 billion of capital across 94 private credit deals since the inception of CRECH, the firm’s direct real estate lending programme in 2011. https://www.cheynecapital.com/


Reza and Chris

DTZ Investors and The Collective launch COLIV - Worlds first institutional co-living fund

14th October 2019

DTZ Investors and The Collective launch COLIV – world's first institutional co-living fund

Reza and Chris

  • COLIV is targeting total equity commitments of up to £650 million to buy or forward-fund between six and ten purpose-built co-living assets in London, with a target gross asset value of £1 billion over the ten-year life of the fund
  • The fund has a high social impact agenda, aiming to provide an innovative solution to help address London’s housing shortage and tackle loneliness in the Capital
  • £70 million of seed capital secured at first close
  • The fund makes first acquisition with forward-funding of The Collective Harrow

LONDON, 14 October 2019 – DTZ Investors (DTZI), a specialist European real estate fund manager, and The Collective, the leading global co-living platform, have jointly launched the world’s first institutional large-scale co-living fund with the aim of raising total equity commitments of up to £650 million.

The new fund – COLIV – will seek to acquire, or forward-fund, between six and ten co-living assets in London, with a target gross asset value of £1 billion over the ten-year life of the fund.

DTZI will act as the investment adviser to the fund, which consists of primarily institutional capital, with The Collective acting as asset manager and property manager. The partnership provides the platform and vehicle for institutional investment in the co-living sector across London over the next ten years and is a clear signal of increasing institutional appetite and demand for large-scale co-living spaces.

The fund offers an innovative solution towards addressing London’s housing shortage by increasing the supply of an alternative and much in-demand housing typology. A heavy emphasis will be placed on positive social and environmental impact with the potential to drive down carbon emissions through the delivery of a sharing economy housing model, and the creation of buildings with ground-breaking energy performance. Social impact is a key driver for the fund with the objective of delivering tangible and meaningful impact at the neighbourhood level for each and every project, and the opportunity to increase the delivery and diversity of homes across London.

The fund has launched with £70 million of seed capital, with DTZI and The Collective equally committing to the £10 million Sponsor Co-Investment.

The fund has also announced its first acquisition with a deal to forward-fund The Collective Harrow, a new co-living destination in the London Borough of Harrow that will start on site immediately.

The Collective Harrow will comprise a nine-storey building with 222 shared living rooms, 5,000 sq ft of incubator employment space targeted at local start-up businesses, and 6,800 sq ft of world-class shared spaces including a public-facing concept dining experience, gym, library, cinema, mindfulness lounge and a ‘MasterChef’-style communal kitchen on the top floor. The Collective is development manager for The Collective Harrow, where construction is underway with completion targeted for 2021.

The fund will seek to provide investors with an attractive core-plus return, by building a portfolio of best-in-class large-scale co-living assets in Greater London over a four-year investment period. In addition to investing in operating assets, COLIV will also forward-fund developments which will be acquired with pre-agreed occupancy targets to provide stabilised cash flow to meet the fund’s income requirements.

The fund has identified a strong pipeline comprising both existing assets from The Collective, as well as new investment opportunities.

DTZ Investors’ CEO, Chris Cooper, said: “We are delighted to announce the launch of COLIV, the world’s first large-scale co-living fund in partnership with The Collective. It’s an important step in the development of our business to be leading the market in the delivery of innovative solutions to London’s housing shortage. This fund will bring forward a strong social agenda through: the buildings and places we create; the manner in which we engage with our communities and; the way in which we foster wellbeing for members.

Co-living is an ideal response to the needs of London’s rented housing market, building on the principles of quality, convenience and community. Modern London life is a conundrum: urban living and technology have managed to create a society that is constantly connected yet alone. People and communities are being pushed apart, contributing to significant loneliness and mental health issues.

Our aim is to have a positive impact beyond the four walls of our real estate, and in this regard, I am thrilled to have teamed up with The Collective, a business we have grown to know very well over the past few years. We have been very keen admirers of how they have pioneered this market, delivering great spaces for their members and neighbourhoods alike, while investing in the needs of their communities.”

Reza Merchant, CEO and Founder of The Collective, said: “The launch of this fund, which aims to bring £1 billion of institutional capital into the co-living market in London over the course of the next 10 years, marks this sector’s arrival as an institutional asset class. We are honoured to be taking the fund forward with DTZI given our shared vision and belief in creating places founded upon meaningful and tangible social and environmental impact.

“Our experience in creating, delivering and operating co-living spaces across London over the past 10 years, paired with DTZI’s deep rooted investment advisory expertise and institutional relationships, provides the foundation for a sustainable operational model that will underpin returns to investors. It also allows us to significantly grow and deliver our pipeline in London in the coming years whilst retaining long-term involvement on all of our projects.”

For more information visit: www.COLIVfund.com


About COLIV

COLIV is the world’s first fund dedicated solely to the co-living sector. The fund, which was set-up by DTZ Investors (DTZI) in partnership with The Collective, is seeking to acquire, or forward-fund, between six and ten purpose-built, large-scale co-living assets, all in the London area with an estimated gross asset value target of £1 billion. DTZI is the investment advisor for the fund, while global co-living pioneer The Collective is the asset manager and property manager. Alongside the investment opportunity, a guiding principle of the fund is to create broader positive impact. This includes making a positive impact to members; the neighbourhoods invested in and more widely on London’s housing shortage. Members will benefit from the strong sense of community, and management focus on wellbeing and personal development. COLIV will also help cohesion by opening its buildings for use by local community groups. A portion of the fund’s rental income will also help local community initiatives which have aligned social objectives. For more information, visit www.colivfund.com


Connecting Communities

11th September 2019

London Living - Connecting Communities

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It’s good to talk – some of you may remember this as the slogan from a popular BT advert which started, gulp, almost 30 years ago. BT introduced this campaign to bring men ‘the bill payers’ onboard with using the phone as women were the main users. How the world has changed!

However, this slogan is still fit for today, just for different reasons. Neighbourhoods are dispersing and people feel less routed to their surroundings. We may communicate more regularly now using technology but it is arguably less meaningful and this is having an impact on our mental health.

In this latest article on LondonLiving, Jessica Mueller, analyst at DTZ Investors looks at the importance of community and our need as human beings to connect.

According to a survey undertaken by ACEVO (2017), the loneliness epidemic is not something that is just affecting the elderly, 83% of 18-34 year olds in the UK report feeling lonely regularly. It is quite a difficult figure to comprehend and of course, the results are subjective. However, it shows that there is something lacking in many of the millennials’ lives. Fortunately, loneliness and mental health are becoming more regular and easier conversations between friends and family. Charities and social media have been promoting discussion and now the focus is moving towards employees and trying to encourage better relationships between colleagues.

As I’ve mentioned previously in the Together Alone article, London can be a particularly lonely place for people in every age group and finding the solution to this is difficult. Generation Rent / younger generations are used to having many different supportive communities around them whilst growing up whether that is through family, teachers, friends, sports or music clubs and even doctors and dentists… what you probably remember as your neighbourhood. There is a genuine sense of care from these people who work or interact with teenagers and children. Those that attend university have an easing into the ‘real’ world but heading into work or moving out of home can be a challenging period for anyone. Once you are in a city there is very little community feel which can lead people to feeling lonely or unsettled.

Looking back a few decades, neighbourhoods were built from people sharing and taking care of each other, by offering a helping hand or giving advice on their specialist subject. Opportunities grew from these neighbourhoods and businesses formed, the larger your neighbourhood was, the greater chance you had in finding a job/opportunity. Most people in these communities had a sense of purpose and therefore felt more fulfilled. Fast forward to now and technology has grown our neighbourhoods to a global scale, by allowing us to contact someone instantly through messaging, calls, video calls and social media. Technology has given us the opportunity to stay in touch with family and friends through Whatsapp groups and Shared Photo Libraries and whilst this is fantastic in many lives, it has also replaced the physical presence which has consequences for mental health.

A more supportive community throughout each individual’s life and not just through school, could save the economy £32bn a year (according to the Eden Project, Communities in 2017) by reducing demand on health and police services but also by increasing people’s productivity. Work colleagues and the workplace are an important part of an individual’s life, considering the average person spends over 50% of their waking hours with colleagues. Employers should be creating environments where colleagues are able to relax into their work environment whether that is through hosting events or having areas designed for relaxed conversations. Friends are your chosen family, having a full circle of support throughout your life from friends, family and work, surely is the best way to avoid this loneliness?

Jessica Mueller

Analyst


LondonLiving is a weekly thought piece looking at different aspects of life in the capital; from the logistics of deliveries, the plight of loneliness, through to how generation rent is shaping its future.

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Generation Rent

4th September 2019

London Living - Generation Rent

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It takes the average single first-time buyer 16 years to save for their deposit in London. Small wander then that Generation Rent are looking at alternative life paths. But as Jessica Mueller, analyst at DTZ Investors argues, they are not unhappy about this fact as some have stated – indeed, it would seem that as one door closes, literally in this case, another one opens.

The Oxford Living Definition of Generation Rent is: “A generation of young adults who, because of high house prices, live in rented accommodation and are regarded as having little chance of becoming homeowners.” In our view, this definition is somewhat simplistic and paints an incomplete and negative picture of an excluded generation. For today’s young people, who are happy to share rather than own and want convenience over stability, renting is a positive choice and not just a financial inevitability.

Millennials have been the focus of conversation for many years now as they were set to become the largest population cohort and have the largest disposable income, however a study from Bloomberg of UN data has just found that Gen Z (Millennial successors) will account for 32% of global population by the end of 2019. Millennials are just behind at 31.5%, although their spending power will still be far greater than Gen Z. Gen Z is classified as anyone born from 2001 onwards or until the next meaningful cohort develops.

Generation Rent to us is a mixture of Millennials and Generation Z, it includes anyone that has grown up in a digitally connected and consumer driven society. The two cohorts have their individual characteristics but still share many similarities. They have always known Amazon, which started as an online bookstore, 25 years ago. Today, the company sells thousands of products for the same or next day delivery.  With 63% of 16-24s and 52% of 25-34s having access to its premium service, it would seem that most of Generation Rent wouldn’t be able to live without it. Whether it be music, films, food or a rental car, Gen R expect instant access to whatever they need, online.

This digitally connected society has driven the demand for non-commitment contracts and both memberships and contracts are becoming short-term. Netflix and Monzo are prime examples, you can cancel and reopen your account with no extra charge. These possibilities are engrained into the values of Generation Rent, which is why the idea that Generation Rent is desperately but unsuccessfully trying to enter the property market doesn’t ring true. Owning a home can bring responsibilities and inertia.

Renting on the other hand gives greater choice and flexibility on location and price, which is much more appealing to someone who is moving into a new city and trying to find a career they are passionate about. Renting does come with its difficulties, there are high deposits, inflexible contracts and, as mentioned previously, a lack of supply for good quality but affordable flats. It is ironic that the rental market has not yet adapted to the requirements of Generation Rent, however new entrants to the market, particularly in the Co-Living sector are beginning to bridge the gap.

Jessica Mueller

Analyst


LondonLiving is a weekly thought piece looking at different aspects of life in the capital; from the logistics of deliveries, the plight of loneliness, through to how generation rent is shaping its future.

Subscribe to LondonLiving here

Sharing is Caring

28th August 2019

London Living - Sharing is Caring

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“If you can’t share nicely, I will take it away from both of you” – if you have young kids, or even grown up ones, this is probably a saying you have used repeatedly (and even more so right now as we are knee deep in the school holidays).

As the sharing economy continues to grow, this life lesson certainly feels like one that Millennials have picked up and run with. But what are the opportunities in real estate for this relatively new way of interacting with products and services? Jessica Mueller, Analyst at DTZ Investors considers some options.

In last week’s LondonLiving I looked at why the value of ownership is decreasing and how the renting trend is growing in the younger generations. Over the last few years, the ‘shared economy’ has been mentioned countless times in meetings and presentations and there’s a good reason for it – technological advancement has given us the ability to become more efficient with our products and services. The sharing economy is an economical model which is defined as ‘a peer-to-peer based activity of acquiring, providing or sharing access to goods and services’, and is often facilitated by a community based online platform. This has the bases to cover the needs of younger generations.

This type of transaction has become fashionable over the years for Generation Rent, with the introduction of platforms to: buy time in someone’s house (Airbnb); buy peoples clothes (Depop); borrow someone’s car (Drivy) and even borrow someone’s pet (Borrow My Doggy). These platforms create a sense of community with the members whilst also creating a form of revenue for them.

Airbnb has become a great way of being efficient with residential real estate, especially for people owning holiday homes or for people who have a second home they move to for 6 months of the year. Both parties benefit from the platform, by either finding a comfortable, well located, modern flat/house or by earning some cash while your home is empty.

Drivy is one of the newest platforms, advertising all over London. The concept is the same as Airbnb but for your car instead and if it’s not something you use regularly, why not share it with someone else? Zipcar was developed before this, which is based on a business to consumer model whereas Drivy has established itself as a platform for peer to peer activity, which tends to build more flexibility, convenience and has a community touch.

Sharing or renting out our possessions is not something new, technology has just changed the way we do it. Jumble sales, B&B’s and renting cars have existed for decades, but these modern platforms have increased the ability to advertise and widen each person’s market. The population is also becoming more environmentally conscious and the sharing economy is a great way to be more efficient with the goods we own. It’s creating great opportunities in cities like London where space is scarce. Most of the platforms which are successful at the moment are typically peer to peer, but focusing on real estate, there must be more opportunities from business to customer.

The office sector has introduced co-working, which is a much more efficient use of space, the providers have simplified leases so that you can sign up quickly. This could be worked through to retail units and warehouses, for retailers or small companies starting out ‘sharing’ vacant retail or warehouse space for the short term could be a be great way for them to test their model. It would create income for the vacant property which could turn into a full lease if the location and building worked for the temporary tenant. Maybe it is better to let companies have a trial run when they invest into a new area?

There are many ways we might see this play out across all sectors, but one thing is for sure, sharing is both caring and cost saving, two things that Millennials demand from their lives, and landlords should be looking for new opportunities to incorporate this approach into their real estate portfolios.

Jessica Mueller

Analyst


LondonLiving is a weekly thought piece looking at different aspects of life in the capital; from the logistics of deliveries, the plight of loneliness, through to how generation rent is shaping its future.

Subscribe to LondonLiving here

New Chapter

21st August 2019

London Living - New Chapter

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Babyboomer, Silent Generation, Millennial. The generation you were born to may impact your thoughts on the best cover of Leonard Cohen’s Hallelujah (covered over 400 times by the likes of Bob Dylan, Rufus Wainright, Alexandra Burke and Peter Hollens feat. Jackie Evancho) but it will of course go much further into who we are and what we hold dear. In the latest LondonLiving, DTZ Investors’ analyst Jessica Mueller looks at how when you started your life, plays into the every day of how you live your life.

I’m sure you have heard many ways in which Millennials are bringing social change to our way of life. Truthfully, each generation has its own intricacies which develop through the environment in which they grew up, each generation is impacted by technological advancements and the economic environment in their youth.

If we take ‘Babyboomers’ for example: their key characteristics are goal-centric, disciplined, competitive and self-assured. The silent generation are known for their hard work ethic, prudent saving and faithful commitment. Millennials on the other hand, are known for being strong on a work/life balance, being able to question authority and are achievement orientated.

So what made Millennials less hard working and competitive? When Millennials were growing up, there was a social shift towards a healthier lifestyle. More scientific proof was published on smoking, eating 5 a day, exercising regularly etc, this fed into their education. Millennials had lessons all the way through their education on health and well-being as well as the environment, something which both the Silent Generation and Babyboomers never had. This has evoked values around health and climate change for many Millennials, which has affected how they purchase goods and services. Some modern companies can charge £7 for salad in the City now because workers are more interested in their health than saving £5 and having a cheap supermarket sandwich.

Millennials have had the greatest change in characteristics from their parents (Babyboomers), which is not only down to their education but also the economic environment. They were mostly late teenagers or young professionals when the global financial crisis hit, which led to low economic growth for their early years of working. This, along with the increase in university fees and incrementally high house prices, has made them begrudge saving. Median wages grew by an average of 0.3% per year between 2007-2017, compared to three times that between the mid 1980’s and mid 1990’s meaning Millennials are worse off than their parents. It would take a Millennial on average 8 years to save for a house deposit in the UK (10 years in London). However, Millennials are spending more on leisure and activities than previous generations. It shows they are less interested in material goods and more interested in creating memories through experiences.

There has been a clear generational shift to personal care with greater awareness of physical and mental health as well as the environment. This has driven a change in the way people shop, the younger generations are more interested in how their products and goods are supplied, ensuring it is environmentally friendly and sustainable. There is likely to be a slight change in the way each generation lives, shops and plays… at the end of the day most teenagers want to be different to their parents, creating new opportunities for businesses. There is reasoning behind these changes and therefore it is important to understand why and where the new demand comes from to ensure your business or real estate is future proofed.

Jessica Mueller

Analyst


LondonLiving is a weekly thought piece looking at different aspects of life in the capital; from the logistics of deliveries, the plight of loneliness, through to how generation rent is shaping its future. 

Subscribe to LondonLiving here