Investors in the UK and Europe are betting that co-living yields will converge with those of build-to-rent and student accommodation, creating big value uplifts, and are set to put £2.25B into the sector over the next few years. Co-living has had its problems in the UK in the past few years, including the administration of its biggest operator, The Collective. But it offers a way of investing in residential with less risk at lower value than similar sectors, and it is increasingly attracting investor interest, attendees at Bisnow’s Co-Living Big Bang event heard. “There is no reason why co-living assets should be trading at a wider yield than BTR and student accommodation,” Crosstree Real Estate partner Safinaz Zakaria said at the event, held at the Leonardo Royal Hotel London City, in partnership with developer and operator Re:shape. “It’s the final frontier in the living sector for investors.” 
Zakaria said that co-living assets were selling for yields around 200 basis points higher than student accommodation and 250 basis points higher than BTR. But given the demand for co-living and the strong occupancy performance over the past few years, as institutional investors become more comfortable with the sector, yields…  Read the full story here. | 
