Maslow Capital Provides £238M Loan to Arada London, Shaw Corporation JV for Southwark Student Scheme
LONDON — Maslow Capital, a pan-European specialist real estate lender, has provided a £238 million development finance facility to a joint venture between Arada London and Shaw Corporation to 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 firms announced Oct. 14.
Maslow Capital Facility Funds Devonshire Place Delivery
The £238 million facility will finance the delivery of Devonshire Place, a mixed-use scheme at 747–759 and 765–775 Old Kent Road, London SE15 1NZ. The development comprises four principal blocks: two student accommodation towers and two affordable housing blocks, alongside ground-floor commercial, community and public space.
Arada London's in-house construction business will act as main contractor. Completion is targeted ahead of the 2029/30 academic year.
The site is a brownfield redevelopment of a former petrol station and derelict industrial land. Southwark Council approved the scheme in 2024, and the project moves from planning and land assembly into funded delivery with the financing.
941 Student Beds and 200 Affordable Homes
The student accommodation will be split across two blocks of 20 to 34 storeys. It will offer a mix of cluster bedrooms, studios and premium studios, including 109 accessible rooms. Residents will have access to a student library, private and group study rooms, a gym, a screening room, private dining space, lounge areas and laundry facilities.
The 200 affordable homes will be delivered in two further blocks. They were acquired by L&G's Affordable Homes division for £46 million. Planning materials indicate the affordable homes include different affordable tenures. The site covers approximately 7,000 square metres.
Earlier proposals for the site contemplated a larger conventional residential component. Rising construction costs led to a revised plan focused on 941 student rooms and 200 affordable homes.
Location and Old Kent Road Regeneration
Devonshire Place sits 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 scheme is close to the proposed Bakerloo Line extension and opposite the location of a proposed future station. That extension remains a future infrastructure project rather than an operating transport link.
The Old Kent Road is a designated growth corridor and Opportunity Area in London planning policy, with former industrial land being intensified with housing, student accommodation, retail and community uses.
Lender and Sponsor Comments
James Henry, Senior Director, 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. 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."
Marc Eden, Investment Director at Arada London, said: "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. 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."
Market Context for London Student Housing
The headline facility equates to approximately £253,000 per student bed when divided across the 941 beds, though the figure also finances the affordable homes, public realm and commercial and community components of the mixed-use scheme.
Devonshire Place forms part of Arada London's approximately 4,500-bed London purpose-built student accommodation (PBSA) portfolio and is its second student scheme financed with Maslow Capital, following Chalk Farm. The project is being delivered into a London student-housing market characterized by a large university population and constrained purpose-built supply. The scheme's programme of cluster rooms, studios, accessible rooms and shared amenities targets the higher-quality segment of the market.
The L&G acquisition of the affordable homes provides an institutional owner for that component of the scheme, a structure that allows the developer and lender to focus on delivery of the student accommodation and commercial elements.
Sources
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