World's First Major Co-Living Fund Seeks $825 Million in Pledges

Real estate investment manager DTZ Investors and co-living developer the Collective have started the world’s first fund to buy and build communal housing in London, betting lonely renters and sky-high house prices will make the niche sector mainstream.

The venture is seeking 650 million pounds ($825 million) in commitments and plans to invest in six to 10 projects in London, according to a statement Monday. The fund has 70 million pounds of seed capital and its managers aim to build a portfolio valued at about 1 billion pounds over its 10-year life, with returns of 8% to 10%.