The project will be delivered by London-focused developer Viewranks Estates under a forward funding agreement.

The off-market project, which has full planning permission and Gateway 2 approval, is located next to Kingston Train Station.

DFI said the investment responds to a growing number of young adults and private renters driving demand for affordable, flexible housing in a market where co-living remains undersupplied.

Construction of the eight storey co-living building is expected to start imminently. Once complete it will offer 200 en-suite studios and amenity spaces. Residents will have access to kitchen and ground floor co-working spaces, a residents’ lounge, cinema, fitness studio, a communal terrace and a games room.

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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.”

Gavin Neilan, founding partner at DFI, added: “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 €314m, as well as Mylo Living, a Danish flex living platform with a 350-unit asset in Copenhagen.”