A property developer has secured funding to turn a former office block in Cardiff city centre into Wales’ first co-living scheme.
The project from Urban Centric will transform the 60,000 square foot office building at Knox Court, which was formerly the Legal and General building, into a co-living space featuring 203 units. Each unit will achieve an EPC rating of ‘A’ and provide residents with access to amenities such as a gym, private dining areas, and a cinema.
Co-living refers to an arrangement which sees tenants renting a room or an apartment in a communal property with shared amenities and activities.
Shawbrook, which has provided a £23.8 million loan for the scheme, said the initiative marks a significant milestone in the Welsh housing market and showcases its commitment to supporting innovative housing solutions.
The debt funding will cover the construction, including the addition of two new floors, and assist with tenant acquisition. The project is scheduled for completion in January 2026.
Urban Centric has also received a £7.6 million equity investment from Housing Growth Partnership (‘HGP’), part of the Lloyds Banking Group, to enable the scheme’s delivery.
John Hughes, Senior Relationship Director at Shawbrook, said:
“We are pleased to support Urban Centric in launching Wales’s first co-living scheme. This partnership, alongside the Housing Growth Partnership, combines our financial expertise with their innovative vision, propelling the project forward.
“Co-living offers a flexible, community-focused living experience that resonates with today’s urban residents seeking affordability and connection. Working with Urban Centric again underscores our commitment at Shawbrook to fostering strong relationships with developers. By understanding the unique needs of each project, we deliver tailored funding solutions that provide the stability essential for successful completion and future growth.”
Andrew Wood, Director of Urban Centric said:
“Urban Centric are proud to be delivering the first co-living scheme in Wales with our partners, the Housing Growth Partnership and with the support of Shawbrook.
Following the successful completion of our first scheme with Shawbrook in Swansea in 2022, we were delighted to partner with them once again on this landmark project. Their flexible and tailored funding approach has been instrumental in helping us bring our vision to life and we look forward to working with them in the future.”
Mike Murphy, Director of Housing Growth Partnership, said:
“This first investment alongside Urban Centric highlights the ever-growing significance of equity funding in creating, regenerating and delivering vibrant communities and homes that meet an unmet demand for housing in key regional UK cities.
“It also underscores our team’s capability in executing complex equity transactions across the UK Living sector. Co-living in particular is a nascent but fast-growing product, as people prioritise city centre living and the infrastructure and social advantages it brings.
“It’s been great working with the team at Urban Centric to date and the collaboration with Shawbrook has given us the reliable financing and confidence needed to bring this project to life. Their clear communication and hands-on approach have been instrumental in ensuring the smooth progression of this development. We look forward to further collaborations in the South-West as we continue to support developers in delivering high-quality, affordable living spaces that meet the UK’s housing demand.”
