Co-living developer secures £6.4m funding deal
Funding of £6.4 million has been secured by The Studios24 which was the first company to deliver a major co-living development in the Midlands.
Cynergy Bank has agreed the refinance package for the London-based property company’s £12.5m residential development in Wolverhampton.
The Studios24 has transformed a dilapidated 12-storey office building into one of the UK’s leading co-living developments. The project, at Birch Street, recently reached practical completion and can accommodate more than 200 residents.
Barry Glantz, managing director of The Studios24, said: “To have secured a £6.4m loan from Cynergy Bank, while the UK is experiencing very difficult economic circumstances, is a major vote of confidence in our co-living concept.
“We have been discussing the deal with Cynergy Bank over the course of the last six months and we have been able to strike a very good long-term deal. One of the many things that impressed them was the demographic at The Studios24. Of all our current residents, only 10 are students and they are post-graduates. The rest are working in sectors such as healthcare, construction, education, human resources, and technology.”
He added: “James Herron and Simon Gunnell, of Cynergy, really believe in the project. They came to the development to see what we have created, and liked what they saw. We believe this could be the first of many projects they may support, and they are keen to provide funding for our next venture. I am now actively looking for potential development sites across the West Midlands.”
Cynergy Bank is a specialist bank serving the blended financial needs of business owners, property entrepreneurs and family businesses. It has expanded its reach with offices in London, Birmingham, Bristol, Manchester, Redhill and Edinburgh.
Simon Gunnell, relationship director at Cynergy Bank, said: “Cynergy Bank is delighted to support Barry and all at The Studios24 on this project. The concept is providing a viable solution for residents and it has created a superb co-living environment which has attracted residents from a wide and varied demographic.
“We pride ourselves on working with our clients to understand their business needs and aspirations. The Cynergy Bank model uses local, skilled relationship managers that understand the markets where we operate, who can quickly learn our client’s needs and deliver certainty at speed. We look forward to supporting Barry and wish him every success as he looks to roll out this model across the Midlands”.
The Studios24, provides residents with en-suite studios, arranged as apartments, with shared facilities including kitchens, working and relaxation areas, a café and bar, gym, laundry and high speed internet.
Co-living is a form of housing that combines private living space with shared communal facilities and is designed to encourage communal interaction and build community. At The Studios24, residents have their own en-suite studios with shared kitchen and dining facilities. Rent includes energy bills, cleaning, council tax, superfast broadband, access to a gym, fitness studio, café and bar, and a range of social events for residents and guests. For more information visit www.thestudios24.co.uk