Maslow Capital has provided a £238m development finance facility to a joint venture between Arada London and the Shaw Corporation. The facility will fund Devonshire Place, a 941-bed student accommodation scheme with 200 affordable homes on the Old Kent Road in the London Borough of Southwark.
The development finance facility covers a student scheme split across two blocks of 20 to 34 storeys, with a mix of cluster bedrooms, studios and premium studios, including 109 accessible rooms. Two further blocks will house the 200 affordable homes, which L&G’s Affordable Homes division has acquired, alongside ground-floor commercial, community and public space.
Residents will have a student library, private and group study rooms, a gym, a screening room, private dining space, lounge areas and laundry facilities.
Arada London’s in-house construction business will act as main contractor, with completion targeted ahead of the 2029/30 academic year. The brownfield site sits on the southern stretch of the Old Kent Road, about eight minutes’ walk from Queens Road Peckham station, with bus connections to Elephant and Castle, Canada Water and Bermondsey.
“This scheme combines a well-connected location with a sponsor that has a strong record of delivering complex projects in the capital,” said James Henry, senior director, origination at Maslow Capital.
“Having worked with Arada London previously and supported this site through its earlier financing stage, we have developed a detailed understanding of both the project and the team behind it.
"That continuity has enabled us to structure a facility that supports the next phase of delivery. Pairing high-quality student accommodation with a substantial affordable housing component also makes this an important development for the wider Southwark area.”
“Devonshire Place will bring 941 high-quality student bedrooms and 200 affordable homes to the Old Kent Road alongside new public realm and community space for the neighbourhood, close to the proposed Bakerloo Line extension,” noted Marc Eden, investment director at Arada London.
“Maslow has provided important continuity of funding, helping us maintain momentum. This is the second student scheme we have delivered with Maslow, following Chalk Farm, and forms part of Arada London’s 4,500 PBSA London portfolio. We value working with a lender that understands our development ambitions and can provide the flexibility and long-term partnership needed to deliver landmark developments.”
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