Wales first co-living scheme lands £24.25m Cardiff deal 2026

Key Points

• Urban Centric secures £24.25m sustainable finance deal for Fitz & Knox in Cardiff with Handelsbanken.
• The facility will be used to manage and operate Wales’ first co-living scheme.
• Fitz & Knox is a 100,000 sq ft scheme developed from the former Legal & General office building at Knox Court.
• The scheme comprises of 208 private studio apartments and has achieved full occupancy.
• The building has been given an Energy Performance Certificate rating of A.
• Handelsbanken has described the deal as being their first investment in the co-living space.
• The development will include flex-working and shared facilities for the benefit of the residents.
• Previous funding for the project includes a £23.8m loan from Shawbrook and £7.6m equity from Housing Growth Partnership.
• Urban Centric purchased the former Legal & General office building in 2022.
• The project is expected to help develop the co-living concept in Wales.

Cardiff (Wales Times) September 11, 2026 — Wales’ first co-living scheme has secured a £24.25 million sustainability-linked facility from Handelsbanken to support the ongoing management and operation of Fitz & Knox, a 208-unit residential development in central uk/local/cardiff/">Cardiff.

The financing marks Handelsbanken’s first engagement with the co-living sector, according to the report by Insider Media. The facility is linked to Fitz & Knox’s environmental credentials and supports a scheme that has already reached full occupancy.

Fitz & Knox was created by Urban Centric through the redevelopment of Knox Court, the former Legal & General headquarters on Fitzalan Place. The building has been converted into a 100,000 sq ft co-living development offering private, fully equipped studio apartments alongside shared facilities and flexible working space.

The project has an Energy Performance Certificate rating of A. This rating reflects the development’s focus on energy efficiency and was a central feature of the sustainability-linked financing arrangement.

What does the Handelsbanken facility support?

The new facility is intended to support the operational phase of Fitz & Knox rather than the initial construction financing alone. It will help Urban Centric manage and operate the completed development, which is now fully occupied.

As reported by Insider Media, Handelsbanken Cardiff branch manager Chris Price said the bank’s relationship-led approach and experience in property finance made it suitable for supporting innovative developments such as Fitz & Knox.

Price said the bank was proud to support a development offering what he described as a distinctive proposition for professionals in Cardiff. He also said the scheme was the first of its kind in Wales and that its sustainability objectives were closely aligned with Handelsbanken’s own values.

The structure of the funding is significant because it connects the financial terms of the facility with the environmental performance of the property. Although the available report does not detail the specific sustainability targets or pricing mechanism attached to the facility, it identifies the financing as sustainability-linked and highlights the building’s EPC A rating.

The arrangement also gives Urban Centric a relationship with a major banking institution during the operational life of the scheme. That may be important as the company develops its wider portfolio of co-living and residential projects.

What is Fitz & Knox and where is it located?

Fitz & Knox is located in Cardiff city centre, on Fitzalan Place, within the former Legal & General headquarters known as Knox Court.

Urban Centric acquired the former office building in 2022. The company’s project information says planning approval was received in April 2024. The completed development provides 208 apartments, mixed-use ground-floor space and shared resident amenities.

The conversion represents a change in the use of a large vacant office building. Instead of demolishing the structure and constructing a new residential building, Urban Centric repurposed the existing property and extended it to create the co-living scheme.

The development includes private studios intended to provide residents with their own accommodation while also giving them access to shared facilities. The model is designed around city-centre living, with communal spaces intended to support social interaction, work and everyday activities.

Insider Media described Fitz & Knox as a luxury co-living development with turnkey private studios, a developed community and a broad range of amenities. The report also said the scheme includes flexible working space and had reached full occupancy by the time of the Handelsbanken financing announcement.

Urban Centric’s own project description states that the scheme is intended to offer high-quality, relatively affordable city-centre accommodation for a new generation of residents. It also identifies the project as Wales’ first co-living scheme and confirms that the development includes commercial space on the ground floor.

Why is the refinancing important for Urban Centric?

The refinancing provides Urban Centric with long-term financial support after the development moved from construction into operation. That transition is important for schemes such as Fitz & Knox because the financial performance of the completed asset depends on occupancy, rent collection, resident services and the effective operation of shared amenities.

The reported full occupancy of Fitz & Knox indicates strong initial demand for the scheme. It does not, however, establish how long the development will remain fully occupied or how rents will perform over time. Those factors will depend on Cardiff’s housing market, the wider economy and the experience of residents.

Andrew Woods, managing director of Urban Centric, said Handelsbanken had taken time to understand the company’s objectives in Cardiff and had become a strategic partner in delivering the development.

Woods said Fitz & Knox represented a milestone for the co-living model in Wales and contributed to environmentally responsible property development. He also said Handelsbanken’s support had played a central role in helping Urban Centric deliver the project.

The transaction may also give Urban Centric additional credibility with lenders and institutional investors. Co-living remains a relatively new residential format in Wales, and a completed, fully occupied scheme could provide an operating example for future projects.

What earlier funding supported the development?

The Handelsbanken facility follows earlier funding arrangements used to develop Fitz & Knox.

In November 2024, Shawbrook provided Urban Centric with a £23.8 million development loan to support the conversion of the Knox Court office building into Wales’ first co-living scheme. The earlier project was described as having 203 units at that stage of development.

The Shawbrook loan was intended to fund construction work, including the addition of two new floors, and to assist with tenant acquisition. The development was also expected to provide residents with shared amenities including a gym, private dining areas and a cinema.

Housing Growth Partnership, an equity investor backed by Lloyds Banking Group, provided £7.6 million to support the project. The equity investment was described as the first investment by HGP alongside Urban Centric.

Mike Murphy, director of Housing Growth Partnership, said the investment reflected the growing importance of equity funding in creating and regenerating homes in regional UK cities. He described co-living as a developing residential product responding to demand for city-centre living and the infrastructure and social benefits associated with it.

The difference between the earlier Shawbrook loan and the later Handelsbanken facility reflects the project’s changing stage. Shawbrook’s financing supported development and construction, while Handelsbanken’s funding supports the completed scheme’s management and operation.

The reported unit count also changed during the project’s development. Earlier reports referred to 203 apartments, while the completed Fitz & Knox scheme is described by Insider Media and Urban Centric as providing 208 apartments. The available reports do not explain the reason for the change, but it may reflect revisions made during design and construction.

What facilities are available to residents?

Fitz & Knox combines private accommodation with shared spaces. The project has been reported as including flexible working facilities, a gym, private dining areas and a cinema.

Urban Centric’s project information confirms that the development includes shared resident amenities and mixed-use commercial space at ground-floor level. The scheme contains different accommodation types, including studios and apartments.

The facilities are intended to address two aspects of urban renting. Private studios provide individual living space, while communal areas offer opportunities for working, socialising and dining without requiring residents to leave the building.

This arrangement differs from conventional private renting, where residents may have a self-contained flat but generally arrange access to gyms, workspaces or social facilities separately. It also differs from traditional house-sharing, in which residents share kitchens and other essential facilities with a small group of tenants.

The co-living model therefore depends on both the quality of the private units and the management of the shared areas. Full occupancy provides evidence of initial demand, but the long-term success of the project will also depend on the cost of renting, the quality of services and the value residents place on the facilities.

What did Urban Centric say about the project?

Urban Centric has presented Fitz & Knox as a significant development for the Welsh residential market. The company’s project information calls it Wales’ first co-living scheme and says the development aims to provide high-quality, affordable city-centre homes.

The company also highlighted the project’s environmental performance. The planned and completed scheme has been associated with an EPC A rating, while the Handelsbanken facility is described as sustainability-linked.

Andrew Woods said the bank’s involvement would help the company deliver its ambitions for Cardiff. His statement linked the project’s importance to both the development of co-living in Wales and the delivery of environmentally responsible property.

The earlier Shawbrook announcement also quoted Andrew Wood, a director of Urban Centric, who said the company was proud to deliver the first co-living scheme in Wales. He referred to Urban Centric’s previous work with Shawbrook on a scheme in Swansea and credited the lender’s flexible funding approach with helping the project progress.

The available reports identify Andrew Woods and Andrew Wood in connection with Urban Centric’s statements. They may refer to different company representatives, but the published material does not provide enough information to establish whether the names represent separate individuals or a variation in reporting.

What could the deal mean for Cardiff’s housing market?

The refinancing confirms that Fitz & Knox has moved beyond the construction stage and is operating as a completed residential asset. Its full occupancy indicates that there was sufficient demand for the scheme when it opened, although occupancy alone does not show whether the accommodation is affordable for all groups of residents.

The development adds purpose-designed rental homes in Cardiff’s city centre and brings a former office building back into use. That may support wider urban regeneration by increasing the number of people living close to employment, transport, retail and leisure facilities.

For the co-living sector, the project provides a high-profile Welsh example backed by development finance, equity investment and operational refinancing. Its performance may influence how lenders, investors and planning authorities assess similar proposals in Cardiff and other Welsh cities.

The scheme’s environmental credentials may also be relevant to future investment decisions. Repurposing an existing office building and achieving an EPC A rating are important features of the project, although the available reports do not provide a full assessment of its carbon emissions, construction impacts or operational energy use.

Background: how did Wales’ first co-living scheme develop?

Urban Centric acquired the former Legal & General Cardiff headquarters in 2022. The property, known as Knox Court, was subsequently proposed for conversion into a co-living development.

Planning approval was received in April 2024, according to Urban Centric. The original proposal was described as a scheme providing 203 co-living apartments, with the former office building extended and repurposed for residential use.

In November 2024, Shawbrook announced a £23.8 million loan for the construction and delivery of the development. Housing Growth Partnership separately committed £7.6 million in equity. The development was then described as including private studios, shared amenities and an EPC A target.

The completed project became known as Fitz & Knox. Later reporting described it as a 100,000 sq ft development with 208 apartments, flexible working space and a full-occupancy position. Handelsbanken subsequently agreed a £24.25 million sustainability-linked facility to support the scheme’s management and operation.

The project is therefore the product of several stages: acquisition of a vacant office building, planning approval, construction finance, equity investment, conversion and operational refinancing.

Prediction: what could this mean for Cardiff renters and future co-living residents?

For Cardiff renters, Fitz & Knox is likely to increase awareness of co-living as an alternative to conventional private renting. Residents may be attracted by furnished studios, central locations, shared amenities and the ability to work or socialise within the same building.

The immediate effect on the wider rental market is likely to be limited because one development with 208 apartments represents only a small proportion of Cardiff’s total housing supply. Its full occupancy may nevertheless encourage other developers and investors to examine whether similar schemes can work in the city.

The main test for residents will be value for money. Co-living schemes can offer convenience and services, but tenants will need to compare the total rent and any included charges with the cost of renting a conventional flat or house share. The quality of management, privacy, noise control and access to shared facilities will also affect residents’ experience.

For future developers, the deal may demonstrate that a completed co-living scheme with strong occupancy and environmental credentials can attract institutional banking support. For lenders, the project provides an opportunity to assess the operating performance of a relatively new residential model in Wales.

The development may also encourage further office-to-residential conversions, particularly where vacant buildings are located near transport links and city-centre employment. However, future projects will still depend on planning permission, construction costs, local demand and the ability to provide accommodation at rents residents can afford.