DFI has secured an off‑market site in Kingston upon Thames to forward fund a £80 million (about €93 million) gross development value co‑living scheme that will deliver 200 en‑suite studios for young professionals.
Location and market pressure
The eight‑storey building will rise beside Kingston Train Station, putting Central London roughly 30 minutes away. The area has seen housing supply lag behind a steady stream of graduates and early‑career workers, a gap that widened after Unilever opened its new headquarters campus in Kingston Town Centre earlier this year.
Demand for shared‑living units remains tight; the capital holds only about 7,000 co‑living beds. By situating the project within easy commuting distance, DFI aims to tap a market that has struggled to keep up with employment growth in consumer, professional services and technology sectors.
Planning clearance reduces risk
The site already carries full planning permission and a Gateway 2 approval from the Building Safety Regulator. That sign‑off, required after post‑Grenfell reforms, often stalls high‑density residential projects, so clearing it before acquisition materially de‑risks the venture.
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With those hurdles removed, the forward‑funding agreement lets DFI finance the development while its London‑based partner, Viewranks Estates, handles construction. The arrangement is described as defensive, shielding the investor from typical market volatility.
Construction is slated to begin imminently. Once completed, residents will pay a single rent that includes utilities and access to a master‑chef style kitchen, ground‑floor co‑working space, bar, restaurant, residents’ lounge, cinema, fitness studio, communal terrace and games room.
“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,” said Francesco Orofino, Investment Director and Head of Hospitality at DFI. “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 a discount to comparable rental housing.”
DFI’s broader European living portfolio includes the Blaekhus student accommodation platform, which comprised roughly 1,200 units and was sold to PATRIZIA in 2022 for €314 million, and Mylo Living, a Danish flex‑living platform with a 350‑unit asset in Copenhagen.
“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,” said Gavin Neilan, Founding Partner at DFI.
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The development could set a template for replicating similar projects near other commuter hubs, offering a blend of private studio space and shared lifestyle amenities that align with the preferences of a mobile, early‑career workforce.
In practice, the scheme may give recent graduates a more affordable entry point into city living, reducing the need to share flatmates in older buildings. It also provides a built‑in community network, which can ease the transition for those moving to a new area for work.
DFI manages over €4 billion in assets across offices in London, Munich, Madrid and Luxembourg. The transaction was advised by Eversheds (legal), Living for Life (consultancy), Savills (property), PwC (audit) and Quartz (valuation).
- Eversheds – Legal adviser
- Savills – Property adviser
- PWC – Audit and assurance
- Quartz – Valuation support
With construction set to start within weeks, the project is expected to deliver its first units by late 2026, adding a sizable supply of purpose‑built co‑living accommodation to a market that has long been constrained.