The developer has agreed the forward sale of the property to the Housing Growth Partnership (HGP), a social impact investor that is part of Lloyds Banking Group.

This investment, of approximately £96m, is being delivered over the course of three years.

A newly created joint venture, Watkin Jones Grove Crescent Holding Limited, has been established to facilitate this transaction.

This joint venture will be overseen by Simon Jones and George Dyer, the respective CFO and group investment director of Watkin Jones.

The joint venture is 75% owned by HGP, with 25% held by Watkin Jones.

Under the arrangement, Watkin Jones will be responsible for the delivery of the PBSA as well as its ongoing management under Fresh — the developer’s accommodation management business.

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In addition to funding for HGP, finance will also be provided through third party debt. The initial contribution for the transaction reflects Watkin Jones’s existing guidance for the current financial year, with initial net cash receipts of approximately £20m.Further income will be

phased over the construction process, with the joint venture selling the scheme upon its completion — the start of the 2026/27 academic year is being targeted for this PBSA’s completion.

If the joint venture sells the PBSA for more than expected, Watkin Jones is entitled to further incentive payments in cash, however, the developer does not expect any sale to occur before the fourth quarter of 2026.

“We are pleased to collaborate for the first time with HGP on this exciting development. The innovative nature of the transaction underlines Watkin Jones’ ability to find attractive structuring solutions for our institutional partners,” said Alex Pease, CEO at Watkin Jones.

“While we remain encouraged by signs that confidence is returning to our residential for rent funding markets, this is tempered by continued uncertainty around the trajectory of interest rate cuts. We, nevertheless, have a number of schemes in the market which are generating good levels of interest.”