Spain's Coliving Giants Merge, European Investment Surges, Mixed-Tenure Towers Secure Consent & More

A. Badi and Caterina merge to create Spain's largest coliving-flex platform, target 7.000 homes

• Spanish coliving operator Badi and corporate living specialist Caterina House agreed to merge, creating a combined platform managing €250m+ assets.
• Target: operate 7,000+ coliving and flex-living homes within four years, focused on Madrid, Barcelona, Valencia.
• Transaction includes capital increase backed by Barlon Capital and Meridia; funds earmarked for technology, platform expansion, and institutional asset onboarding.
• Badi contributes 5m registered users, 350.000 monthly active users, and proprietary tenant acquisition technology; Caterina brings institutional B2B operations and corporate client relationships.
• Carlos Pierre (Badi) and Álvaro Córdoba lead a combined entity alongside Caterina management; Meridia and Barlon remain key shareholders.

Why it matters: The merger signals Spain's coliving market entering a consolidation phase, combining digital demand generation with institutional-grade operations to serve both individual renters and corporate clients. The €250m AUM base and 7.000-home target position the combined business as the strategic platform for European funds seeking Spanish living sector exposure, reflecting broader capital appetite for scaled, tech-enabled operators capable of delivering end-to-end solutions across asset acquisition, leasing, and management.

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B. Investor appetite for European coliving surges; €4,5bn deployment anticipated over three years

• Savills and Savills Investment Management survey found 50% of European investors plan to target coliving over the next three years, up from 35% a year earlier.
• Expected capital deployment: €4,5bn into coliving sector, nearly double prior survey levels.
• Shift attributed to growing number of operational schemes demonstrating model viability; recent institutional investments by Greystar and Stoneshield cited as confidence drivers.
• Nearly two-fifths of respondents expect to increase overall operational real estate allocation; coliving among fastest-growing subsectors alongside single-family housing, senior living, and care homes.
• Over three-fifths of investors expect improved fundraising conditions over next 12 months, with Value-Add and Core+ strategies attracting strongest support.

Why it matters: European coliving is moving beyond niche status into mainstream institutional portfolios, supported by evidence from completed schemes and demographic tailwinds. The near-doubling of anticipated deployment reflects capital seeking diversified living sector exposure and long-term income, while also supporting a thickening pipeline of opportunities - both new developments and platform acquisitions - expected to come to market through 2026.

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C. Amro explores £80m sale of The Rex coliving scheme weeks after opening

• Amro Partners exploring sale of The Rex, 212-unit coliving development in Kingston upon Thames, potentially valuing operational assets at £80m.
• Knight Frank instructed to explore strategic options; no final decision on sale confirmed.
• Scheme delivered through a JV between Amro Partners and NTT UD Europe (European subsidiary of Japanese developer NTT Urban Development); first completed UK project for NTT UD Europe.
• Located opposite Kingston railway station; part-retrofit of 1960s building previously used for student accommodation.
• Achieved BREEAM Outstanding, Fitwel three-star, WiredScore Platinum; designed to meet GLA net zero carbon ambitions and LETI 2030 targets; exceeds Building Regulations operational energy performance by 59%.
• Amenities include coworking spaces, communal kitchens, lounges, private dining, cinema, gym, yoga studio, landscaped roof terraces.

Why it matters: Unlike distressed disposals, this represents a newly delivered, institutionally developed asset entering the market shortly after opening - a test of pricing and investor appetite for operational coliving as a tradable, income-generating asset class. The £80m valuation and timing reflect confidence in leasing momentum and suggest developers may increasingly view coliving as a build-to-core strategy, exiting soon after stabilisation to recycle capital.

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D. 77 Marsh Wall secures planning for 820-home mixed-tenure tower including 238 coliving units

• Areli Developments secured planning consent from Tower Hamlets for a 54-storey mixed-tenure scheme at 77 Marsh Wall, Isle of Dogs, opposite South Quay DLR station.
• Total: 820 homes comprising 318 BTR, 238 coliving, 266 serviced apartments, 121 affordable (96 social rent, 25 intermediate); represents 38% affordable by habitable room.
• Coliving homes occupy levels 36-52: 204 studios, 10 larger studios, 24 accessible units; separate entrances for different tenures; shared amenity spaces across all residents.
• Designed by Patel Taylor for Areli acting on behalf of British Airways Pension Trustees Ltd (managed by BlackRock Real Assets).
• Includes 430 m² retail, 192 m² community space, 3,171 m² public realm; amenities include coworking, cinema, gym, pool, shared kitchens/lounges.
• All-electric building with air source heat pumps, renewable energy, green roofs; targets 4 Star Home Quality Mark; whole-life carbon and circular economy principles embedded.
• Fourth major residential consent secured by Areli within 12 months, totalling nearly 3.000 units.

Why it matters: The scheme exemplifies tenure integration, embedding coliving within a single development alongside BTR, serviced apartments, and affordable housing - reflecting evolving investor and planning authority acceptance of multi-tenure models. The scale, institutional backing (BlackRock), and incorporation of substantial affordable provision suggest coliving is increasingly viewed as compatible with policy goals and capable of cross-subsidising affordable housing within viable, mixed-income developments.

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E. Peel Waters and Urban Pulse advance 526-unit Yorkhill Quay coliving/BTR scheme in Glasgow

• Peel Waters and developer Urban Pulse filed first residential plans for Yorkhill Quay coliving, BTR, and potential PBSA scheme at Glasgow Waters; part of £100m investment.
• Scheme: 526 units total; construction commenced March 2026 on the coliving component.
• Designed by Anomaly Architects: series of stepped contemporary towers responding to riverside setting, with shared terraces, views toward River Clyde and city centre.
• Active ground floor with retail, leisure, amenity; covered colonnade; central reception; extensive shared facilities; landscaped areas.
• Builds on outline planning consent (July 2024) for 1.100 homes at Yorkhill Quay; follows commencement of £3,75m infrastructure works funded by Peel Waters, delivering 400m waterfront promenade.
• Glasgow Waters masterplan transforming former brownfield land into waterfront district with homes, jobs, public spaces, improved connectivity.

Why it matters: Yorkhill Quay demonstrates public-private regeneration models delivering coliving at scale within transformational placemaking schemes. Peel Waters' upfront infrastructure investment and integration of multiple tenures signal developer confidence in coliving as a core component of mixed-use urban regeneration, while also illustrating how large-scale masterplans can de-risk delivery and create amenity-rich environments that enhance coliving's market positioning.

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F. UK Big Six cities: BTR, coliving, PBSA dominate delivery as private sale displaced

• Savills Research report 'UK Cities: a mixed-use perspective' found rental tenures now dominate city centre delivery across Birmingham, Bristol, Edinburgh, Glasgow, Leeds, Manchester.
• Decade pre-GFC: private sale housing dominated; last ten years: BTR overtook private sale, PBSA expanded rapidly, coliving emerged as new asset class.
• Manchester delivered 3,448 coliving beds, 15,650 BTR homes, 5.3m ft² offices (2016–2025); Birmingham: 6.985 student beds, 6.397 BTR homes, 3,4m ft² offices; Leeds: 10.042 student beds.
• Rental growth averaged 4 - 7.5% annually across Big Six over last five years, supporting strong returns.
• Outlook: residential to remain central to regeneration via rental-led models, but rental growth expected to moderate as affordability limits reached; high construction costs, borrowing costs, regulation restricting supply.
• Savills urges local authorities to adopt a pragmatic approach to viability; public-private partnerships and patient institutional capital key to unlocking future opportunities.

Why it matters: The data confirms coliving's establishment as a material component of UK urban residential delivery, no longer experimental but embedded within institutional-led regeneration. However, the warning on viability constraints signals that future pipeline growth depends on planning pragmatism and risk-sharing between public and private sectors, particularly as affordability pressures and cost inflation squeeze development economics.

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G. JustCo launches integrated coworking-coliving-retail format in Singapore

• Singapore flex office operator JustCo launched JustCo Place, combining coworking, coliving, retail within a single 'live-work-play lifestyle hub'.
• First location: former Taste Orchard mall, 160 Orchard Road; opening September 2026.
• Five storeys coworking/retail (basement one to level four, 150.000 ft²); five storeys coliving apartments (levels above).
• Levels three and four fully occupied by Deloitte Singapore from September.
• Site vacant since January 2026 after landlord OG terminated Taste Orchard's lease; OG remains landlord.

Why it matters: JustCo's model tests vertical integration of work, living, and retail - a strategy that could appeal to landlords with underperforming or vacant retail/office stock seeking to reposition assets for operational real estate. The Deloitte anchor tenancy provides immediate coworking revenue stability, while coliving captures demand from corporate relocators and young professionals. Success could accelerate adaptive reuse of obsolete commercial buildings across Asia-Pacific.

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H. Coliwoo opens 380-room resort-style coliving hotel near Singapore Changi Airport

• Coliwoo opened Coliwoo Resort Changi, Singapore's first resort-style coliving hotel, converted from former state-owned holiday chalet park at Jalan Loyang Besar.
• 380 rooms serving short- and long-term rentals; targeted at international students, airline staff, business travellers, leisure guests.
• Near Changi Airport, Changi Business Park, Singapore University of Technology and Design.
• Facilities: separate adult/kids pools, gym, coworking lounge, karaoke, sports court, playground, outdoor event space, F&B outlets, convenience store, landscaped gardens.
• 10-month adaptive reuse of 40-year-old chalet; 40% existing landscape and original terracotta roof tiles retained.
• Sustainability: solar panels, rainwater harvesting, EV charging, food composting, energy-efficient lighting, repurposed materials.

Why it matters: Coliwoo Resort Changi blurs boundaries between coliving, serviced apartments, and hospitality, targeting transient segments (airline crew, business travellers) alongside students - a hybrid model that maximises occupancy and revenue flexibility. The adaptive reuse approach and resort amenities also position coliving as a lifestyle upgrade rather than affordable compromise, potentially expanding addressable market and supporting higher rents in leisure-oriented locations.

Morro (UK)

• The Altham (321 studios, Walthamstow) shortlisted for BDA Brick Awards 'Large Housing Development' category‍
• ‍Scheme opened March 2026, first residents April; refinanced with Aareal Bank (May 2026)‍
• ‍Designed by Allford Hall Monaghan Morris; pet-friendly; amenities include gym, coworking, café, retail, concierge, app‍
• Positioning: sister brand to Scape (PBSA) and Meanwhile Group; delivering high-quality, amenity-rich urban coliving with strong design credentials and institutional backing

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JustCo (Singapore)

• Launched JustCo Place: integrated coworking-coliving-retail format; first site at 160 Orchard Road opening September 2026‍
• ‍150.000 ft² coworking/retail, five storeys coliving; Deloitte Singapore anchor tenant (levels 3 - 4)‍
• Positioning: flex office operator diversifying into lifestyle hubs combining work, living, retail to capture full resident/member lifecycle and reposition underutilised commercial assets

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Coliwoo (Singapore)

• Opened Coliwoo Resort Changi: 380-room resort-style coliving hotel converted from 40-year-old state holiday chalet‍
• ‍Serves short/long-term rentals; targets international students, airline staff, business/leisure travellers‍
• ‍Facilities: pools, gym, coworking, karaoke, sports, F&B; sustainability features include solar, rainwater, EV charging‍
• ‍Positioning: hybrid coliving-hospitality model maximising occupancy flexibility and amenity differentiation in leisure-oriented, transit-adjacent locations

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HUB (UK)

• Miles Keeley (Head of Acquisitions) stepping down after nearly seven years; portfolio doubled to £4bn+ over last five years; coliving portfolio exceeds 3.000 beds‍
• ‍Also established HubCap office-to-alternative-use platform: 400.000+ ft² across eight projects acquired for conversion to coliving/hotels‍
• ‍No replacement announced; Keeley on gardening leave

A. Multi-tenure integration normalising: coliving embedded within BTR/affordable/serviced frameworks

• 77 Marsh Wall combines 238 coliving units with 318 BTR, 266 serviced apartments, 121 affordable within single 54-storey tower; separate entrances but shared amenities
• Yorkhill Quay (Glasgow) mixes coliving, BTR, potential PBSA within 526-unit waterfront scheme backed by £100m investment and £3,75m public infrastructure spend
• Reflects investor and planning authority acceptance of tenure hybridisation as means to optimise viability, meet affordable housing requirements, and diversify income risk

Constraint: operational complexity increases; requires flexible management platforms capable of serving distinct customer segments and lease structures within shared buildings

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B. Institutional capital targeting scaled platforms over standalone assets

• Badi-Caterina merger creates €250m+ AUM platform targeting 7.000+ homes, backed by Meridia and Barlon; combines tech, ops, institutional relationships
• 50% of European investors plan coliving exposure over three years (Savills survey); €4,5bn deployment anticipated, nearly double prior levels
• Shift from funding individual schemes toward acquiring or backing operating platforms with proprietary demand channels (Badi's 5m users), B2B capabilities (Caterina's corporate clients), and scalable tech infrastructure

Constraint: platform consolidation may reduce diversity of operator models and increase concentration risk; smaller, specialised operators may struggle to access capital

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C. Adaptive reuse and brownfield regeneration key delivery routes

• The Rex (Kingston): part-retrofit of 1960s building previously student accommodation; achieved BREEAM Outstanding despite retaining structural elements
• JustCo Place (Singapore): repurposing vacant retail/office mall (Taste Orchard) into coworking-coliving-retail hub
• Coliwoo Resort Changi: 10-month conversion of 40-year-old state holiday chalet into 380-room coliving hotel; retained 40% landscape and original roof tiles
• Yorkhill Quay and Glasgow Waters: transforming former brownfield waterfront with £3,75m infrastructure investment unlocking c.1,100 homes

Constraint: adaptive reuse dependent on existing building suitability, planning flexibility, and cost competitiveness versus new-build; not universally applicable

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D. Sustainability credentials becoming baseline expectation, not premium add-on

• The Rex: BREEAM Outstanding, Fitwel 3-star, WiredScore Platinum; exceeds Building Regs operational energy by 59%; targets GLA net zero and LETI 2030
• 77 Marsh Wall: all-electric, ASHP, renewable energy, green roofs, whole-life carbon and circular economy principles; targets 4 Star HQM
• Coliwoo Resort Changi: solar panels, rainwater harvesting, EV charging, food composting, energy-efficient lighting, repurposed materials
• The Altham: shortlisted for Low Carbon Project of the Year
• Investor survey shows ESG integration non-negotiable for institutional capital; developers pricing sustainability into baseline specification rather than optional upgrade

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E. Rental growth moderating as affordability limits reached; viability under pressure

• Savills reports UK Big Six rental growth averaged 4 - 7.5% annually over last five years but expects moderation ahead as affordability ceilings hit
• High construction costs, borrowing costs, regulation restricting new supply, widening gap between demand and delivery
• Developers and local authorities urged toward pragmatic viability approach; otherwise pipelines risk stalling

Constraint: if rental growth flattens while costs remain elevated, development margins compress; may force shift toward smaller units, reduced amenity, or deferred schemes unless public subsidy or patient capital bridges gap

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F. Coliving-hospitality hybrids expanding addressable market and revenue flexibility

• Coliwoo Resort Changi targets short- and long-term rentals across international students, airline staff, business/leisure travellers - maximising occupancy via multiple customer segments
• JustCo Place integrates coliving with serviced/hospitality-style amenities and coworking, capturing work, living, leisure spend within single asset
• 77 Marsh Wall includes 266 serviced apartments alongside 238 coliving units, allowing operational flexibility and higher nightly rates for transient guests

Constraint: regulatory classification ambiguity (C3 residential vs. sui generis vs. C1 hotel) may complicate planning; operational licensing, fire safety, taxation regimes differ by jurisdiction

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G. Personnel and advisory market reorganising around living sector specialisation

• LSH launched dedicated national Living Investment team under Elle Gray (national head) and Jack Robson (Midlands & North head), reflecting investor demand for specialist expertise
• Miles Keeley (HUB Head of Acquisitions) stepped down after expanding portfolio to £4bn and 3,000+ coliving beds; sector maturation driving talent mobility
• Advisory firms consolidating expertise to serve institutional clients seeking clarity on asset class fundamentals, deal structuring, viability, regulatory landscape

Constraint: talent concentration in London and top-tier operators may exacerbate regional disparities and limit innovation in smaller markets

BDA Brick Awards 2026 - date not disclosed

• The Altham (Morro, Walthamstow, 321 studios) shortlisted in 'Large Housing Development' category

• Watch for recognition of high-quality, design-led coliving within mainstream housing awards, signalling sector acceptance beyond niche/alternative categories

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JustCo Place (Singapore) opening - September 2026

• First integrated coworking-coliving-retail hub at 160 Orchard Road; Deloitte Singapore anchor tenant

• Watch for leasing velocity, customer mix (work vs. live vs. retail), and whether model proves replicable across other underperforming retail/office sites in Singapore and wider APAC

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Avison Young financial filings - due by 30 September 2026

• UK arm of global advisory firm facing HMRC winding-up petition over historical tax obligation; 2025 accounts due; business made £102m pre-tax losses in both 2023 and 2024

• Watch for resolution and potential restructuring implications; Avison Young active across UK living sector advisory and any disruption could affect deal flow visibility and market intelligence