The development loan is being used for a site in Stratford, east London, with completion being targeted in time for the start of the 2026/27 academic year.

Also encompassing around 2,000 sqm of commercial space, the PBSA has a GDV of £120m. The development will target a BREEAM ‘excellent’ certification.

This loan means Investec has provided £1.1bn of finance to the PBSA sector since 2011. Demographic trends were cited for this latest project, with London suffering from a continued lack of student accommodation.

According to CBRE and QX Global, there is currently a shortfall of 105,000 full-time students in the capital in terms of university places and PBSA bed supply.

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Commenting on the PBSA investment opportunity, Alice Harman - originator at Investec Real Estate - said: “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.
 
“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.”
 
George Dyer, group investment director at Wakin Jones, added: “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."