DFI, the pan-European private equity real estate platform, has committed forward funding for a 200-bed co-living development in Kingston upon Thames through an off-market transaction valued at £80 million gross development value (GDV). The project will be delivered by London-based developer Viewranks Estates under a forward funding agreement.
Situated adjacent to Kingston railway station, the scheme benefits from excellent transport links, with Central London reachable in around 30 minutes by train. The development has secured full planning consent and Gateway 2 approval, positioning it to move into construction in the near future.
The Kingston market continues to face a shortage of housing supply despite strong demand from renters, particularly young professionals and recent graduates seeking flexible accommodation within commuting distance of London. Demand is further supported by the area’s diverse economy, which is driven by sectors including consumer goods, professional services and technology. The recent opening of Unilever’s headquarters campus in Kingston town centre has added to the area’s appeal.
The eight-storey building will provide 200 en-suite studio apartments with rents designed to include utility bills and access to a wide range of amenities. Shared facilities will include co-working areas, a professionally equipped communal kitchen, leisure and entertainment spaces, a residents’ lounge, cinema, fitness studio, games room, terrace, bar and restaurant.
Alongside the development, DFI is creating a dedicated lifestyle brand aimed at the co-living market and intends to explore further opportunities in locations both within London and across key commuter hubs surrounding the capital.
The investment reflects growing demand for affordable and flexible rental accommodation among younger renters. Despite increasing interest in the sector, co-living provision in London remains relatively limited, with around 7,000 operational beds currently available across the city.
DFI received advice on the transaction from Eversheds, Living for Life, Savills, PwC and Quartz.
Commenting on the investment, Francesco Orofino, Investment Director and Head of Hospitality at DFI, said: “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 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.”
Gavin Neilan, Founding Partner at DFI, highlighted the firm’s experience across living-sector investments, saying: “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 €314 million, as well as Mylo Living, a Danish flex living platform with a 350-unit asset in Copenhagen.”
