Cheyne Capital has acquired City Link House, a vacant building in East Croydon, South London, for £210m.
Cheyne Capital will redevelop it into a co-living scheme with 485 co-living units and 84 affordable homes, and will keep commercial and community space on site.
The development will include amenities like a gym and wellness suite, cinema, games room and recording studio.
Cheyne Capital said the scheme is targeting BREEAM ‘Outstanding’ and an EPC rating of A, with low carbon use in mind for both operation and construction.
Matt Floyd at Cheyne Real Estate said: “We are proud to support a project which can play a role in furthering the regeneration of Croydon, and will contribute to its vibrant business and living community.
“This project reflects Cheyne Capital’s continued commitment to the UK flexible-living sector, building on our involvement in landmark developments such as Ark (previously The Collective) Canary Wharf and Taxi House in Central London.”
CBRE and Springer Nicolas arranged the deal for Wittington Investments and its development manager, Fifth State.
Legal advice for Wittington Investments and Fifth State was given by Gowling WLG, while DLA Piper acted for Cheyne Real Estate.
Jonathan Allen at CBRE Limited said: “This transaction highlights the continued market demand for best-in-class, purpose-built shared living development opportunities across London.
“With tenants increasingly prioritising flexibility and convenience, co-living is emerging as a compelling housing solution, perfectly suited to a diverse tenant demographic.
“We are delighted to have brokered this deal between Wittington Investments and Cheyne Real Estate, and look forward to witnessing the positive impact this development will have on the community.”
