Investec writes £55m loan for Walthamstow co-living development

Investec writes £55m loan for Walthamstow co-living development

Investec Real Estate has arranged a £55m loan for Scape Group’s co-living development in Walthamstow, London.

PBSA and living units provider Scape Group has secured consent for the construction of a 321-bed co-living scheme at 1 Blackhorse Lane, east London.

The project, due to complete in 2025, will launch under Scape Group’s living brand Morro.

Targeting an EPC A rating and BREEAM ‘excellent’ certification, the scheme will feature shared residential amenity spaces, a ground-floor cafe and retail unit, and a purpose-built music and comedy venue.

Investec and Scape Group have partnered together before to fund the latter’s other work in the co-living and PBSA sectors.

This included a £53.5m senior debt facility in 2021 to fund the development of 403 PBSA units and 113 Morro living units in Guildford.

“This Blackhorse Lane transaction is an exciting expansion of our exposure to the co-living space,  which we believe is very underinvested, and will enable Scape Group to grow and enhance its portfolio,” said Hollie Sleigh, portfolio manager at Investec Real Estate.

“This is our sixth loan with Scape Group, whose track record in sourcing and delivering highly desirable and extremely well managed PBSA and living assets speaks for itself.”

Investec has already identified co-living as an area for growth; in its third ‘Future Living’ report, published in October 2023, it found 46% of global institutional investors were considering investing in these assets over the next five years.

The report also found this investment activity had doubled since 2021.

The Walthamstow development will also be the first Morro building Scape Group has constructed in central London.

“We’ve had incredible support from Waltham Forest Council who have seen the value in our proposition for their growing community,” said Charles Moran, planning director at Scape Group.

“Morro is ideally suited to this diverse, rapidly changing neighbourhood and presents us with many fantastic opportunities for collaboration with the many artists and makers in the local area.”

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