A long-vacant former petrol station and derelict industrial plot at Devonshire Place will be transformed into a 941-bed purpose-built student accommodation (PBSA) development alongside 200 affordable homes, new shops and neighbourhood amenities.

The scheme, approved by Southwark Council in 2024, is moving ahead after Arada London and Shaw Corporation completed a transaction with Legal & General (L&G).

An active ground floor will include a grocery store, café and student facilities to help animate Old Kent Road, a key growth corridor in south-east London. A community hub will offer free, bookable space for local residents and groups.

L&G's Affordable Homes division has acquired the 200 affordable homes, unlocking delivery of the student accommodation and establishing a mixed-tenure community intended to serve both long-term residents and an expanding student population.

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Sustainability targets include BREEAM Excellent across design, construction and operation, with the project aiming to be among the first PBSA schemes to achieve WELL Platinum certification. Plans also provide for enhanced public realm, comprehensive landscaping, children’s play areas and extensive greenery.

For Arada London and Shaw Corporation, the agreement secures a forward-funded affordable housing partner at scale, while for L&G it marks another deployment of institutional capital into London’s constrained affordable housing market.

With funding in place and planning secured, Devonshire Place now progresses from consent to construction, bringing new homes, student accommodation and local services to a strategic site on the capital’s evolving southern axis.

Pete Cross, Chief Operating Officer, L&G Affordable Homes said: "Our aim has always been to deliver great quality, environmentally sustainable and affordable homes that people can build a great future from.

"Devonshire Place is an excellent example of how we are able to work with forward-thinking partners and deploy institutional capital to deliver truly affordable homes where they are needed most."