Collective assets hit the block

Four freehold blocks of flats formerly owned by The Collective have been put up for sale through CBRE. The firm has been appointed to sell the Dome Apartments, four freehold operational assets located within London travel zones 1-3 across Acton, King’s Cross (pictured) and Kentish Town. The portfolio comprises 136 beds, with a mixture of self-contained studios and non-en-suite rooms. It is currently 95% occupied and has a total gross income of around £1.8m. CBRE is seeking in excess of £30m for the portfolio. Assets can also be acquired individually. Louis Furner, director of residential capital markets and student housing at CBRE, said: “The areas in which these properties are located are very popular with a variety of renters, in particular students and young professionals. The assets benefit from the areas’ very attractive supply and demand dynamics, making them a highly desirable investment opportunity for which we anticipate a high level of interest, both from within the UK and from further afield.” The Dome properties were some of the first for The Collective after its launch in 2012. Founder Reza Merchant took out a £1.8m bridging loan secured against his family home to fund the first acquisitions. Merchant had a vision to grow the company to 100,000 co-living beds globally by 2025. However, high levels of debt and a loss of income during the pandemic saw the company fall into administration last year. FTI Consulting was appointed as administrator. In January, co-living operator Vonder took over five Collective assets, including the Dome portfolio. To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews Photo courtesy of CBRE