Re:shape has exchanged contracts on three co-living and PBSA development sites, creating a 1,850-bed, £885m GDV pipeline.
The alternative living developer acquired the three sites in Woolwich, Bethnal Green and Watford with the backing of a number of UK-based family offices.
The three-acre Macbean Street brownfield development site in Woolwich was previously owned by L&G. Greenwich Council refused L&G’s planning application for the site in 2022.
The acquisitions mark a strategic evolution for Re:shape, which has pivoted from repositioning hotel assets – such as the ARK co-living brand in Wembley – to acquiring new ground-up development opportunities in the South East.
Jermaine Browne, co-founder of Re:shape, said: “The acquisition of the Macbean Street is a watershed moment for Re:shape, and one that comes with significant responsibility to the local community. It’s a rare opportunity to deliver over 1,200 beds, more than 100 new affordable homes for local families as well as much needed social infrastructure for the surrounding community in one place.
“The operational success of the 1,000+ bed ARK co-living platform, showcased in the initial proof of concept, Wembley ARK, has instilled confidence with local planning departments, politicians and communities on the positive and important role that second generation co-living can play in addressing today’s housing crisis in the UK. It also provides us with the confidence to now launch our second, alternative living platform that is underpinned by a heritage-first approach, pioneering social impact initiatives, and traditional affordable housing solutions.”
Charlie Gayner, co-founder of Re:shape, added: “We are witnessing a surge of new capital, in particular core funds, investing in co-living opportunities in the UK and across Europe due to the attractive income profile with inflation linked rents. With PBSA becoming quite a saturated space and BTR facing viability issues in the UK funds are actively seeking to diversify their living portfolios.
“As we begin our search for a programmatic joint venture funding partner, we have had positive initial conversations already with institutions who recognise the opportunity we have and share our passion to deliver a sustainable, ESG-focused living platform which is committed to building high-quality assets in well-connected locations for our target demographic of working professionals of all age groups.”
