Watkin Jones has created a joint venture with Lloyds-backed equity investor Housing Growth Partnership (HGP) to develop a circa £120m GDV purpose-built student accommodation (PBSA) development in Stratford, East London.
Located on a one-acre brownfield site on Grove Crescent, the development will comprise 397 beds and 2,000 sq m (circa 21,500 sq ft) of commercial space.
HGP is investing 75% of the equity requirement and Watkin Jones is providing 25%. Watkin Jones’ accommodation management business Fresh will be responsible for the delivery of the scheme as well as ongoing management.
It is anticipated the PBSA element of the scheme will be ready for the start of the 2026/27 academic year.
George Dyer, group investment director at Watkin Jones, said: “We are delighted to partner with HGP on this joint venture, which will allow us to deliver secured returns in line with group targets whilst also offering the opportunity for outperformance from the recovery of the London PBSA market. The project will provide much needed supply into Stratford, a key student location within London, delivering high quality accommodation with strong ESG credentials.”
Colin Bennett, investment director at HGP, added: “Establishing our first joint venture with Watkin Jones, one of the UK’s leading PBSA providers, is another milestone for HGP. It also demonstrates the growing demand for our equity offering as a means to accelerate the delivery of much needed living accommodation across the UK. The demographic and structural drivers underpinning the PBSA sector especially in London, a global leader in higher education provision, are highly supportive.
“Having surpassed our 10,000 homes target a year earlier than planned, we continue to diversify into new tenures and commit larger investments, whilst continuing to deliver meaningful social impact for both residents and wider communities.”
