Housing Growth Partnership, a social impact investor and part of Lloyds Banking Group, will take a 75% stake in the joint venture development with Watkin Jones taking the remaining 25%.

Under this arrangement, Watkin Jones will deliver the three-year build and take on its ongoing management through Fresh, Watkin Jones’ accommodation management business.  

The scheme, which will rise to 12 storeys, will be built on land previously occupied by Jewson builders’ merchants at Grove Crescent Road.

Multi-block project will feature brick envelope buildings

Alex Pease, chief executive officer of Watkin Jones, said: “We are pleased to collaborate for the first time with Housing Growth Partnership on this exciting development. The innovative nature of the transaction underlines Watkin Jones’ ability to find attractive structuring solutions for our institutional partners.

“While we remain encouraged by signs that confidence is returning to our residential for rent funding markets, this is tempered by continued uncertainty around the trajectory of interest rate cuts.

“We, nevertheless, have a number of schemes in the market which are generating good levels of interest.”