Watkin Jones has announced the establishment of a joint venture with Housing Growth Partnership, the Lloyds-backed equity investor, to develop a 397-bed, £120million PBSA development in Stratford, East London.
Located on a one-acre brownfield site on Grove Crescent, the development will also include circa 2,000m2 of commercial space. The scheme is conveniently located to cater for the 14,000 students studying at UCL East and UAL’s London College of Fashion campuses in the Queen Elizabeth Olympic Park, as well as the nearby Birkbeck College and UEL University Square Stratford campus.
HGP is investing 75% of the equity requirement and Watkin Jones 25%. The group will be responsible for the delivery of the scheme as well as ongoing management through Fresh, Watkin Jones’ accommodation management business. Completion of the PBSA element targeted in time for the start of the 2026/27 academic year and will deliver essential student housing in response to the persistent national shortage of rental homes for students.
The development is aiming to achieve a ‘BREEAM Excellent’ rating and will provide new outdoor spaces and amenities, along with enhancements to the public realm including additional wildlife-friendly landscaping and greenery to enhance the local surroundings. The development promotes a car-free environment, advocating sustainable transportation options like biking or walking.
Watkin Jones and HGP will collaborate with local youth groups through various initiatives, including roof garden plantings, guided tours of the site, and educational programmes focused on sustainability and modern housing concepts.
George Dyer, group investment director of Watkin Jones, commented: “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 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.”
