Malaysia’s prominent engineering and property developer Gamuda Berhad has teamed up again with Singapore-based real estate private equity firm Q Investment Partners (QIP) to expand their purpose-built student accommodation (PBSA) project in Woolwich, London. This announcement, marking Phase 2 of the development, follows the recent topping out of Phase 1, underscoring the partners’ confidence in the long-term prospects of the UK’s PBSA sector.

Phase 2, valued at approximately £41.5 million, will add 120 student beds to the existing 299, bringing the total across both phases to 419 beds, with a combined gross development value (GDV) of about £144.5 million. The new site for this phase was acquired from Hurlington Capital and completion is expected in the fourth quarter of 2026. Phase 1, launched in mid-2024, consists of 150 studios and 149 cluster rooms located at 81-88 Beresford Street, forming part of the extensive multi-billion-pound regeneration of the former Royal Arsenal estate in Woolwich. It aims to serve the 2026/2027 academic year and is notable for including 35% affordable student accommodation, targeting high sustainability ratings such as BREEAM Excellent and EPC A.

Gamuda’s CEO of Gamuda Land, Chu Wai Lune, highlighted the strategic importance of this project in establishing a strong UK presence, stating that the expansion reflects their commitment to delivering high-quality, sustainable student living spaces tailored to global student needs. This aligns with Gamuda’s broader aim to develop around 3,000 PBSA beds in the UK by 2029, focusing particularly on cities with leading Russell Group universities where demand notably exceeds supply.

QIP’s CEO and Co-Founder, Peter Young, emphasised the partnership’s ambition to deliver institutional-grade student accommodation that meets the evolving needs of students and creates long-term value for investors and local communities alike. He remarked that the Woolwich development not only represents QIP’s flagship PBSA project in London but also demonstrates their confidence in the UK’s thriving PBSA sector, which continues to attract robust investment—£7.9 billion was transacted in 2023 alone, driven by a persistent shortage of student beds and steadily growing international student enrolments, which topped 679,000 in the 2022/23 academic year.

Situated within the Royal Arsenal masterplan, the site benefits from excellent transport links via the Elizabeth Line, offering students quick access to key London universities such as the University of Greenwich, King’s College London, and the London School of Economics with commuting times under 35 minutes. The development is designed with student well-being as a priority, providing amenities including private study areas, fitness and yoga rooms, games rooms, bicycle storage, and a vibrant community hub inclusive of commercial spaces.

Financing for the initial phase of the project was secured through a £47.3 million loan facility with Alpha Property Lending, underscoring strong financial backing for the venture. The development is executed with expertise from QIP’s UK-based Development Group, led by James Coppack, and supported by construction partners including CField Construction and Alpha Real Estate Finance.

The Woolwich PBSA project marks a significant milestone for both Gamuda and QIP: Gamuda’s first student housing development in the UK and QIP’s initial scheme in London. The partners’ work in this regeneration area highlights the growing appeal of student accommodation investments in well-located urban areas that combine both strong academic demand and sustainable urban renewal.

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Source: Noah Wire Services