Maslow Capital has provided a £238 million development finance facility to a joint venture between Arada London and the Shaw Corporation for a mixed-use scheme in Southwark. The facility will fund Devonshire Place, comprising 941 purpose-built student accommodation beds and 200 affordable homes on the Old Kent Road.
The development finance facility covers a student scheme split across two blocks ranging from 20 to 34 storeys, featuring cluster bedrooms, studios and premium studios, including 109 accessible rooms. Two additional blocks will house the 200 affordable homes, which L&G’s Affordable Homes division has acquired. The scheme will also include ground-floor commercial, community and public space.
Facility structure and delivery
Student residents will have access to a 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 is located on the southern stretch of the Old Kent Road, approximately eight minutes’ walk from Queens Road Peckham station, with bus connections to Elephant and Castle, Canada Water and Bermondsey. The development is positioned close to the proposed Bakerloo Line extension.
James Henry, senior director of origination at Maslow Capital, said: “This scheme combines a well-connected location with a sponsor that has a strong record of delivering complex projects in the 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.”
Market context
The transaction comes as development finance lenders report strong activity in the London market. The facility structure reflects continued demand for purpose-built student accommodation in the capital, with Arada London’s portfolio now totalling 4,500 PBSA beds across London.
Marc Eden, investment director at Arada London, noted: “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.”
The financing arrangement represents Maslow Capital’s second collaboration with Arada London on student accommodation, following their previous work on a Chalk Farm scheme. The structure of the facility provides continuity from earlier financing stages of the project, according to the lender. While mortgage rates remain elevated, development finance for large-scale schemes continues to be available for established developers with track records in the sector.
