A developer of an emerging type of property has secured a new £6.4 million funding deal.
London-based The Studios24 has won backing from Cynergy Bank as a refinance package for one of the first co-living schemes in the Midlands, valued at £12.5 million.
It has regenerated a run-down 12-storey office block in Wolverhampton to create a new co-living complex capable of accommodating more than 200 residents.
Co-living is a relatively new concept in the UK which combines private living space with shared communal facilities which is designed to encourage interaction and build a community among residents.
At The Studios24, residents have their own en-suite studios with shared lounge, kitchen and dining facilities and their rent includes energy bills, cleaning, council tax and broadband as well as access to a gym, café and bar.
A range of social events for residents and guests are also put on.
Barry Glantz, managing director of The Studios24, said: “To have secured a £6.4 million 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 have been able to strike a very good long-term deal.
“We believe this could be the first of many projects Cynergy Bank 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.”
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 look forward to supporting Barry and wish him every success as he looks to roll out this model across the Midlands.”