Singapore-headquartered private equity firm Q Investment Partners (QIP) and London-based investor and developer Hurlington Capital have formed a joint venture to develop a circa £80m GDV purpose-built student accommodation (PBSA) scheme in Woolwich, London.
Hurlington acquired the site at 81-88 Beresford Street in 2020 and secured planning consent for a 298-bed PBSA scheme in August last year. The building will feature a hub on the ground floor providing meeting space for local community groups and 35% of the student accommodation will be affordable.
The project is the first JV between QIP and Hurlington Capital and is QIP’s debut PBSA scheme in London and Hurlington’s first PBSA asset. QIP is investing the primary equity with alignment equity from Hurlington Capital and both parties will share development management responsibilities.
Jamie Feldman, CEO and founder of Hurlington Capital, said: “Marking our debut in the PBSA market, with three more schemes in planning, we’re immensely proud of our Woolwich development. Not only a best-in-class asset in itself, it delivers tangible social impact in a reflection of both Hurlington Capital’s values as a business and our commitment and hands-on approach to community engagement.
“There is a clear undersupply in student housing in London which has resulted in this becoming a deeply attractive sector for those of us who have the risk appetite, backed by the expertise and strong track record, to take advantage of the opportunity. Alongside Q Investment Partners, an established leader in the UK’s PBSA sector, we look forward to delivering much-needed high quality accommodation in a prime location.”
Peter Young, CEO and co-founder of Q Investment Partners, added: “The UK’s PBSA market remains remarkably resilient and a compelling opportunity for investors who know the sector in detail. Hurlington Capital’s knowledge of the London residential market and ability to unlock complex planning challenges provides us with an exciting moment to expand and commit our capital into attractive schemes, such as this at Woolwich’s Royal Arsenal, and we look forward to working with them to explore further opportunities.”
James Coppack, head of development at Q Investment Partners, said: “Our Woolwich Royal Arsenal site will be the first in the UK which we lead as development managers through our QIP Development Group – and what a scheme to start with. Set within one of London’s most successful regeneration areas, surrounded by heritage buildings and the stunning new Elizabeth line station, our commitment to this project reinforces our expertise in and our confidence in the fundamentals of the UK’s student housing sector.
“This marks an important moment in our continued growth as an integrated leader in the residential sector, and our first collaboration with Hurlington Capital which we are extremely excited about.”
Work on site is due to commence in Q1 2024, with completion in time for the 2026/27 academic year.
