Swiss Life Asset Management AG entered into a joint venture with real estate investment company True North Management Ltd. to invest in the relatively nascent co-living sector in the UK.
Swiss Life formed formed the joint venture by acquiring a minority stake in True North, according to an April 9 news release. True North, a company established in 2021, achieved a 99% occupancy rate at its first project Holm Wimbledon Park in London. True North has plans to expand the project to a total of 111 beds and to create another co-living space since it acquired a prime asset in a London Zone 1 location.
Per Erikson, Head of Real Estate at Swiss Life, said:
“The co-living sector presents an exciting opportunity within the real estate market, particularly in the UK. We remain focused on exploring new opportunities as we expand our portfolio. True North’s expertise in co-living development, coupled with Swiss Life Asset Managers’ residential know-how and investment capacity, offers the opportunity to become a leader in the evolving co-living landscape.”
Jill Ju, founder and CEO at True North, said: “Both organisations share a purpose of enabling people and thinking long-term, which made Swiss Life Asset Managers an ideal partner for us. We both see the value of a partnership between a team of entrepreneurial experts and a supportive long-term investor. We are working on an expansive pipeline of new sites to grow our UK portfolio. There is a lack of established investment vehicles in this asset class, and we aim to create a fund vehicle that would enable mission-aligned capital partners to join us on this journey.”
The co-living sector generates stable income for institutional investors in the long-term, the news release added.