Watkin Jones plc and Lloyds-backed equity investor HGP have secured a development loan from Investec Real Estate to deliver its £120m purpose-built student accommodation (PBSA) development in Stratford, East London.
“We are delighted to continue our longstanding relationship with Investec Real Estate. Following the successful establishment of our joint venture with HGP, this development debt facility will enable delivery of Grove Crescent Road, Stratford in time for the 2026/27 academic year.
“Once complete, the scheme will deliver much needed high quality student accommodation, offering strong ESG credentials, into one of London’s fastest growing sub-markets.”
George Dyer, Group Investment Director, Watkin Jones
Watkin Jones and HGP recently formed the joint venture to deliver the Stratford scheme. A multi-disciplinary team of legal experts from Shoosmiths advised HGP.
Shoosmiths provided legal advice across multiple disciplines, supporting HGP in navigating the real estate, corporate, banking, and tax aspects of the joint venture.
“Increasing the delivery of high-quality student accommodation is crucial, particularly in London, where demand for space is high. We are proud to have supported HGP in this joint venture, which is a significant deal for the business that also contributes to addressing the shortage of PBSA.
“Shoosmiths’ knowledge of the PBSA sector, combined with its ability to seamlessly integrate expertise from specialist teams across the firm, was instrumental in completing the [joint venture] deal.”
Sheelagh Cooley, Partner and Joint Head of Real Estate Finance, Shoosmiths
Located on Grove Crescent on a one-acre brownfield site, the Stratford scheme will deliver 397 student bedrooms and c. 2,000 sqm of commercial space.
Future residents will benefit from outdoor spaces and amenities, as well as improved public realm which includes additional wildlife-friendly landscaping and greenery to enhance the local surroundings.
In line with Watkin Jones, HGP and Investec’s ESG credentials, the scheme is targeting BREEAM ‘Excellent’.
Watkin Jones and HGP expect the scheme to be complete in time for the 2026/27 academic year.
“The investment case for UK PBSA remains highly compelling, underpinned by supportive structural and demographic trends. London in particular, with its concentration of leading higher education institutions and enduring global appeal, coupled with higher land costs and high private sector rents, continues to witness strong capital and rental growth.
“Importantly, the scheme’s environmental and social credentials align with both our own lending strategy and the demands of today’s students, whilst future proofing it from potential obsolescence.
“Working with existing partners who are sector leaders remains central to our growth strategy and we look forward to delivering much needed future schemes alongside Watkin Jones and the Housing Growth Partnership.”
Alice Harman, Originator, Investec Real Estate
