(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has completed the provision of a green loan towards construction of a 283-unit purpose-built student accommodation (‘PBSA’) scheme in Elephant & Castle, London, which is being brought forward by Fabrix and Patrizia.
The facility, which is aligned to the Loan Market Association’s (‘LMA’) Green Loan Principles, has been made by the Aviva Investors Multi Sector Private Debt Long Term Asset Fund (‘LTAF’) and is the first investment into the PBSA market made by the fund since its launch, following several investments into the office and logistics sectors.
The scheme, situated on Walworth Road, is the first project in the joint venture (‘Sustainable Communities London’) between Fabrix and Patrizia, which is focussed on delivering sustainable, affordable and alternative housing across London by repurposing underused urban land and buildings.
The 134,000 sq ft scheme will deliver 283 student beds alongside 35 per cent on-site affordable social rent homes. The mixed-use development will also create over 5,000 sq ft of retail space on the ground floor, along with a new landscaped courtyard garden and more than 2,600 sq ft of dedicated community space, accommodating a pioneering community kitchen co‑created with local charity Pembroke House. Student amenity spaces will include study areas, student lounge and dining facilities, as well as a TV/cinema room, games area and onsite gym. The scheme will target a BREEAM ‘Excellent’ certification and an EPC ‘A’ rating, with a reuse‑first design, retaining and remodelling the existing concrete frame of the 1980s building, while incorporating all-electric heating solutions, air source heat pumps and onsite renewable energy generation via solar PV. It is also expected to contribute a 144 per cent biodiversity net gain.
The development is located in the London Borough of Southwark, immediately south of the £4bn Elephant Park regeneration area and close to world-class universities including the University of the Arts and London South Bank University. The site is just an eight-minute walk from Elephant & Castle underground station, providing quick access to other central London universities including London School of Economics, Kings College and Westminster University. The scheme is expected to be completed in 2028, ahead of the beginning of the 2028/29 academic year.
It builds on Aviva Investors’ existing lending against student accommodation which includes financing provided to Urbanest, secured against a portfolio of six central London PBSA schemes that together total more than 2,900 beds.
Sima Kotecha, Head of High Yield Strategies, Real Estate Debt, at Aviva Investors, said:
“The combination of Fabrix’s track record in transformational urban regeneration and Patrizia’s deep institutional capability, aligns well with our ambition to finance high‑quality, energy-efficient real estate, and we are delighted to partner with both firms on a project with such strong ambitions. London is home to 37 Universities but faces a structural undersupply of student accommodation, particularly across central areas of the city. We are therefore incredibly pleased to fund this scheme at Elephant & Castle, which we expect will be a core asset in one of London’s main PBSA clusters. Centrally located, it provides easy access to several of London’s universities and transport networks. It is another example of how we are using investment activity to help the UK get ready for the future, by supporting future talent and creating social value in local communities, whilst also delivering long-term outcomes for investors.”
Matthew Weaver, Finance Director at Fabrix, said:
“Fabrix and Patrizia are delighted to be partnering with Aviva Investors to deliver this transformational project. Its backing represents a strong endorsement of the impact strategy of Sustainable Communities London, which aims to deliver ambitious, high-quality and sustainable developments that address the housing crisis while generating meaningful social impact. It also reinforces Fabrix’s position as a trusted development partner for institutional capital. As the first development within our joint venture, this scheme sets a strong foundation for a pipeline of future projects, underpinned by a shared ambition to deliver further impact-driven, alternative living schemes across central London. This underutilised 1980s high-street office building has long been in need of renewal, and through our partnership with Aviva Investors, we will unlock its transformation into student accommodation, affordable homes and vibrant community spaces that bring Walworth residents together. We look forward to working closely with Aviva Investors and our partners as we move into delivery.”
Marleen Bekkers, Fund Manager at Patrizia, said:
“This investment reflects Patrizia’s strategy of deploying capital through its pan-European Living platform into high-quality, value-add opportunities in supply-constrained urban markets. In this JV, we are focused on delivering projects in London that combine strong long-term income potential with measurable social and environmental outcomes.”
Aviva Investors was advised by Eversheds Sutherland. Fabrix was advised by Greenberg Traurig and BBS Capital.
