Reditum entered this co-living investment in the London borough of Wandsworth with market-leading brand The Collective in early 2019. The partnership succeeded in achieving planning permission in July 2019 and is now proceeding to the project’s development phase; the planned development consists of 310 co-living units and communal amenities for tenants.
Relative to other studio and one-bedroom new build options, the proposed rental pricing is highly competitive as it includes water, gas, electricity, Wi-Fi, gym access, room clean & linen change, council tax, luggage storage and, of course, access to all of the shared building facilities. Co-living as a sector is gaining traction in urban areas, where private rental rates are pricing young professionals out of the market.
The Collective are at the forefront of the co-living movement and are regarded as pioneers in the space. They successfully completed the build of their Old Oak scheme in North London in Q2 2016 which has run at an average occupancy rate of 97%, reaching 99% occupancy in 2018 despite a 4% increase in rental price. Since then, a second development opened in 2019 in Canary Wharf, which has also maintained a high occupancy rate. The group has since taken a number of sites successfully through the planning process, refined its product and has built up a well-known brand.
The co-living market is a fast-growing sector in the UK and broader global market, and is now attracting interest from institutional funds. The sector capitalises on key market shifts; according to CBRE over 55% of the global population now lives in urban centres and 64% of global millennials rent.
Investors are further boosted by the security of metropolitan London’s strong underlying rental demographics. The proposed scheme is located in Earlsfield, a highly desirable and affluent suburb of south-west London within the Borough of Wandsworth and characterised by a young population and an unemployment rate of 3.5%.
Situated in Zone 3, the proposed scheme is just 5 minute’s walk away from Earlsfield station, providing a direct line into London Waterloo via Clapham Junction and Vauxhall. Frequent buses and the close proximity to Wimbledon Park tube station ensures that access to London’s other commercial hubs will be easily achievable for residents.