Puma Property Finance inks £50m loan to Scape Living for co-living space in East London
Puma Property Finance (Puma) today announces it has provided a facility of approximately £50m for a transformational co-living, commercial and events development in Walthamstow, East London.
The development, directly opposite Blackhorse Lane station, will see the creation of 273 residential living units as well as new commercial co-working areas and a flexible performing arts events space. The scheme is being developed by a joint venture between Scape Living, one of the UK’s largest providers of ‘Living’ units, and Dutch pension giant APG. As of December 2022, Scape Living received consent for the enhanced scheme and construction is expected to commence no later than Q2 2023.
Once built, the project will complete the latest phase of a £3bn+ regeneration of the local area, which will have provided more than 2,500 new residential living units (across BTR, Co-Living, PBSA and build-to-sell) to address the ongoing housing shortage in the capital, as well as delivering substantial new community provision including a flexible performing arts events space and extensive amenities for tenants.
The facility represents Puma’s third substantial loan into the London market in the last 9 months, following the funding of a £65m residential scheme in Stonebridge Park and a £52m new sustainable office development in Parsons Green. Scape and APG have also made substantial investments in the London residential and commercial markets in recent months, in what should be seen as a clear vote of confidence for the ongoing appeal of the capital.
Shane Ryan, Director, who led the deal for Puma Property Finance, comments: “We are delighted to be partnering with Scape Living and APG to turn this exciting development into a reality. The transformation of the Blackhorse Lane area is not only helping to address the acute housing shortage in London but is creating a diverse and sustainable community.
This is the largest loan that Puma Property Finance has provided to date, and it is telling that the funding will be used for a substantial co-living development, a sector in which we believe strongly and that looks set for significant growth in the coming years as it attracts further institutional capital support. More and more people are discovering the benefits of the co-living model, which provides increased certainty of costs as well as providing a sense of community alongside state-of-the-art accommodation and amenities.
We are excited by the vision of the Scape Living team and we look forward to partnering on other similar Living schemes across the UK in the near-future. Puma Property Finance remains excited for the prospects of further lending going forward despite recent challenging market conditions.”
Adam Brockley, Founder & Global CDO of Scape Living, added: “We are delighted to partner with Puma Property Finance for the first time. The Puma team have been a pleasure to work with throughout the process and have demonstrated a commercial approach, great flexibility in a tight timeline, and a deep knowledge of the co-living sector. We very much look forward to working with them again in the fast-growing Living space.”