A project transforming a former office building in the centre of Cardiff into Wales’ first co-living scheme has secured a £30m-plus funding boost to ensure its completion .
Developer Urban Centric has struck a £23.8m debt deal with Shawbrook for the project at the 60,000 sq ft Knox Court building alongside securing a £7.6m equity injection from Housing Growth Partnership, which is part of Lloyds Banking Group.
The project is scheduled for completion in January 2026 and will provide 206 apartments for rent, alongside share areas. It will also have office units on the ground floor. The funding will finance the construction work, including the addition of two new floors, and assist with tenant acquisition.
The building has been vacate since financial services firm L&G moved staff last year into its new Welsh HQ building at the Interchange scheme, which forms part of the wider Central Square development around Cardiff Central Station.
Andrew Wood, director of Urban Centric, said: “Urban Centric are proud to be delivering the first co-living scheme in Wales with our partners, the Housing Growth Partnership and with the support of Shawbrook.
“Following the successful completion of our first scheme with Shawbrook in Swansea in 2022, we were delighted to partner with them once again on this landmark project. Their flexible and tailored funding approach has been instrumental in helping us bring our vision to life and we look forward to working with them in the future.”
John Hughes, senior relationship director at Shawbrook, said “We are pleased to support Urban Centric in launching Wales’s first co-living scheme. This partnership, alongside the Housing Growth Partnership, combines our financial expertise with their innovative vision, propelling the project forward.
Co-living offers a flexible, community-focused living experience that resonates with today’s urban residents seeking affordability and connection. Working with Urban Centric again underscores our commitment at Shawbrook to fostering strong relationships with developers.”
Mike Murphy, director of Housing Growth Partnership, said: “This first investment alongside Urban Centric highlights the ever-growing significance of equity funding in creating, regenerating and delivering vibrant communities and homes that meet an unmet demand for housing in key regional Ƶ cities. It also underscores our team’s capability in executing complex equity transactions across the Ƶ living sector.
"Co-living in particular is a nascent but fast-growing product, as people prioritise city centre living and the infrastructure and social advantages it brings. It’s been great working with the team at Urban Centric to date and the collaboration with Shawbrook has given us the reliable financing and confidence needed to bring this project to life.
Urban Centric acquired the building in 2022 from Maya Capital in a £6.2m deal.
