BAM acquires Kingdom Houses

Co-living operator Built Asset Management acquires Kingdom Houses for an undisclosed fee, and shares insights about the market and its future.

Built Asset Management kitchen at one of its co-living schemes | BTR News
Built Asset Management kitchen at one of its co-living schemes.

Built Asset Management (BAM) has acquired houseshare specialist Kingdom Houses, whose turnover exceeded £3m in the last financial year. The acquisition is part of BAM’s targeted growth strategy within the upmarket co-living sector.

BAM will take on the operation of Kingdom Houses’ portfolio of 300+ houseshare units across London, joining BAM’s existing 1,000+ co-living units. The acquisition will create the largest co-living operator of its kind in the capital.

“After 15 fantastic years working to successfully establish Kingdom Houses as one of the leading houseshare providers in London, we felt it was time to take the company to the next level. In BAM, we saw instant alignment in our values and vision, with a shared ethos – one to improve the quality and availability of co-living housing options for young professionals across the capital – acting as the driving force behind our decision for acquisition.

“BAM has been incredibly successful in its rapid expansion and we have no doubt that it is the perfect partner to take Kingdom Houses to the next level, continuing on the journey that we’ve been proud to be on since the company’s inception in 2006. We very much look forward to working closely with the BAM team to achieve even greater success.”

Dawid Joubert, Founder and Chief Executive Officer, Kingdom Houses

Prior to the acquisition, BAM was already established as one of London’s largest co-living operators, managing over £250m worth of London real estate. The acquisition represents 30% growth for BAM, with over £325m worth of co-living real estate now solely under its management.

“This acquisition is an incredibly exciting opportunity to execute the first step in our ambitious growth strategy, following a challenging yet successful couple of years. Kingdom Houses’ ethos, portfolio and tenant base align incredibly well with our own, so the acquisition is a very natural and complementary fit. It has resulted in a 30% increase in size without diluting or changing the high-end nature of our co-living offering.

“I would like to extend huge congratulations to Dawid, Founder of Kingdom Houses, for the fantastic business that he’s built over the past 15 years. Scaling a multi-million pound business in this market is no mean feat and his achievement is impressive. I am very pleased that Dawid will be staying on as Chief Executive Officer to oversee the smooth running of the business.”

Alex Gibbs, Co-Founder and Director, BAM
Jordi Pasqualin, Co-Founder and Director at BAM (L) and Alex Gibbs, Co-Founder and Director, BAM (R) | BTR News
Jordi Pasqualin, Co-Founder and Director at BAM (L) and Alex Gibbs, Co-Founder and Director, BAM (R). Photo © Sheila Burnett.

The co-living market and its future in the capital

BAM’s Founder and Director, Alex Gibbs talks to BTR News about the co-living market and its future in the capital – as the UK returns to normality in the aftermath of the pandemic.

“The co-living sector will continue to see significant demand among London professionals as the country emerges from the pandemic, presenting many opportunities for investors, developers and landlords operating within this asset class.

“As the UK leads the way in returning to normality in the aftermath of the pandemic, the co-living sector is picking back up its pre-pandemic position as the ‘sub-sector to watch’ within residential real estate. Pre-pandemic growth in the sector was incredibly strong, and the best operators in the market have now proven that this is an asset class which can weather the hard times, as well benefit effectively from a sustained bull market. 

“As the co-living asset class continues its process of maturation and journey towards being an institutional-grade investment, early adopters in the investor and developer categories are likely to benefit from significant capital appreciation. As the sub-sector becomes increasingly recognised, access to more cost-effective capital will enable more players to enter the market and benefit from more adaptable and increased returns on their investment.

“From an end-user perspective, we are certainly predicting (and seeing) high demand in the post-pandemic era. The accelerated changes over the last two years have created an environment in which young professionals are placing an increased value on flexibility, interaction with technology and adaptability of space. Co-living as a concept and an asset class is perfectly poised to add significant value in these areas.

“As a Group, we are incredibly excited about the opportunity that lies ahead of us. Our ability to effectively and efficiently operate multiple types of real estate as co-living rental solutions – nicely bolstered by the Kingdom Houses acquisition – sets us up to broaden our pool of real estate partners and really diversify our service offering to accommodate the breadth of end-user requirements.”

Alex Gibbs, Co-Founder and Director, BAM