The private client investor buying Chiswick Tower in west London has plans to turn it into a 415-bed co-living space, Homes & Property has learned.
Its 190-space car park would be turned into an “affordable housing scheme“ as part of these plans.
ASK Partners (ASK) has provided a £18.2 million loan to support the acquisition of the office block, the property lender announced today.
“We were delighted to lend against this site,” said Elliot Blatt, Head of Origination at ASK.
“Our client has a very sound business plan to repurpose this building, adding value to an already desirable development site,” Blatt added.
“We are definitely seeing appetite for co-living increase, as the set-up has gained in popularity amongst graduates and young professionals.”
The 19-storey purpose-built office block in Hounslow was built in 1966 as the headquarters of IBM. After IBM left in 1992, Chiswick Tower was then taken over in 1995 by BSI (British Standards Institution) after a major refurbishment.
Chiswick Tower changed hands in 2010 when it was bought by Hermes Real Estate for a reported £56.5million in 2013, and continued to be let as office space.
It was one of three landmark office buildings in the area put on the market for £195.2 million in 2023, but only Chiswick Tower sold while the others were withdrawn.
The tower sold to a private investor, reported to be from the Middle East, for an undisclosed sum.
Co-living schemes involve private rental rooms, often with their own ensuite, with shared amenities in communal areas. They often have community-building offerings such as yoga classes and co-working spaces.
There are currently 25,021 co-living beds operational or in the pipeline for the UK, according to a 2023 report from Savills.
Hailed by some as an answer to the rental crisis and substandard private rental homes, some schemes have come under scrutiny for the small size of the rooms, and tenants often have to adhere to strict rules.
In London, space standards for a minimum dwelling size of 37 square metres do not apply to co-living schemes.
Under Permitted Development Rights (PDR) introduced in 2015 to encourage the re-use of empty office space, office-to-residential conversions have the right to develop without applying for planning permission.
