Watkin Jones plc and the Lloyds-backed equity investor HGP have formed a joint venture to deliver a £120m purpose-built student accommodation (PBSA) development in Stratford, East London.
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.
Located on a one-acre brownfield site on Grove Crescent, the development will deliver 397 student bedrooms and c. 2,000 sqm of commercial space. The PBSA is targeted to complete in time for the start of the 2026/27 academic year.
The scheme will also deliver new outdoor spaces and amenities, alongside enhancements to the public realm which includes additional wildlife-friendly landscaping and greenery to enhance the local surroundings.
“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.”
George Dyer, Group Investment Director, Watkin Jones
Aligned to Watkin Jones and HGP’s strong ESG credentials, the pair are aiming to achieve a ‘BREEAM Excellent’ rating for the scheme, which promotes a car-free environment, advocating sustainable transportation options like cycling 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.
“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.”
Colin Bennett, Investment Director, HGP
The new PBSA scheme will cater for the c.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.
