Dubai Developer Gets £238m Loan for 941-Bed Housing, Southwark 2026

Key Points

• Major Capital Injection: Arada London, in a joint venture partnership with Shaw Corporation, has secured a £238 million development finance facility from specialist real estate lender Maslow Capital.
• Large-Scale Mixed-Use Scheme: The funding will directly finance the construction of Devonshire Place, a major regeneration project situated on Old Kent Road in the London Borough of Southwark.
• Substantial Accommodation Delivery: The development is set to deliver 941 purpose-built student accommodation (PBSA) bed spaces alongside 200 affordable residential homes.
• Cross-Border Growth: The transaction highlights expanding international investment into London’s student accommodation sector by Middle Eastern entities, marking a significant milestone for Dubai-based Arada in the United Kingdom property market.

Southwark (South London News) October 19, 2026 — In a major development for the South London property market, Dubai-based real estate firm Arada, operating through its UK arm Arada London in a joint venture with developer Shaw Corporation, has formally closed a £238 million debt facility to finance the construction of a vast mixed-use development in Southwark. The multimillion-pound development finance package has been provided by real estate debt provider Maslow Capital, clearing the primary financial hurdle for the ground-up delivery of the flagship site known as Devonshire Place.

As reported by Ciaran Nerval of Property Week, the joint venture secured the £238 million loan package specifically to enable construction activities on the strategic Old Kent Road site within the London Borough of Southwark. Writing for CRE Media Europe, trade correspondents confirmed that the development facility will finance both the primary purpose-built student accommodation (PBSA) superstructure and its integrated residential components, establishing one of the largest single-site student housing financing deals struck in Capital markets this year.

The joint venture brings together the international development capability of Arada—which was originally established in the United Arab Emirates—with the local urban regeneration expertise of Shaw Corporation. The provision of debt by Maslow Capital reflects sustained lender appetite for well-located London residential and higher education support infrastructure, despite broader macroeconomic headwinds in commercial real estate.

What Will the Devonshire Place Regeneration Scheme Deliver to South London?

The Devonshire Place masterplan represents a substantial urban transformation along the Old Kent Road corridor, an area designated for extensive regeneration under local planning guidance. The development has been designed to address acute supply shortages in both higher education housing and local residential markets across Southwark and central London.

The core of the scheme comprises a 941-bed purpose-built student accommodation facility. This student element will be housed in modern, high-density blocks equipped with dedicated study zones, communal amenities, and management facilities tailored to higher education scholars attending London’s major universities.

In addition to the 941 student bed spaces, the development agreement mandates the delivery of 200 affordable homes. These residential units are structured to help meet the London Borough of Southwark’s stringent local housing targets, providing tenure-checked housing options for local residents alongside the primary student population. The project integrates residential and student uses into a single masterplanned scheme, featuring communal public realm space, active ground-floor commercial units, and sustainable building infrastructure.

How Are Industry Leaders and Capital Providers Reacting to the Transaction?

Financial and real estate commentators across major industry journals have highlighted the transaction as a significant vote of confidence in the underlying fundamentals of the UK student housing sector.

According to market coverage detailed in Estates Gazette, the scale of the facility provided by Maslow Capital underscores how structured development funding can successfully unlock complex multi-tenure projects. Property analysts noted that while debt markets have generally exercised caution over pure commercial or speculative office developments, institutional lenders continue to allocate substantial capital to operational residential assets and PBSA projects backed by experienced development partners.

Representatives from the joint venture and lending partners noted that the successful financial close enables immediate progression into full-scale construction planning and contractor procurement on site, ensuring delivery timelines remain aligned with upcoming academic intake cycles in London.

What Is the Background to the Devonshire Place Student Housing Development?

The area surrounding Old Kent Road in Southwark has undergone significant urban policy changes over the past decade. Designated as a key Opportunity Area by the Greater London Authority (GLA) and Southwark Council, Old Kent Road is slated for thousands of new homes, commercial spaces, and infrastructure improvements. However, multi-tenure schemes along this historic arterial route have frequently faced delays stemming from complex site assembly, planning requirements, and changing capital market conditions.

Purpose-built student accommodation in London has faced a growing structural imbalance between supply and demand. Higher education institutions across the capital have consistently expanded student intake over recent academic years, while the supply of dedicated student housing has struggled to keep pace due to elevated construction costs, stringent planning policies, and high land values.

For Dubai-headquartered developer Arada, entering the United Kingdom real estate landscape represents a core part of its international expansion strategy. Having established a dominant presence in the UAE real estate sector through large-scale community masterplans, the developer created Arada London to target strategic UK urban sites. By partnering with Shaw Corporation—a well-established British property development and urban regeneration consultancy—Arada secured local planning alignment and site acquisition capability, culminating in the formal assembly and planning consent for the Devonshire Place plot.

Maslow Capital, a specialist lender with extensive experience in funding UK residential, student, and co-living schemes, evaluated the structural supply-demand deficit in Southwark before issuing the £238 million facility. The finalization of this loan completes the pre-development phase, shifting the historic Old Kent Road plot from a planning framework into active physical construction.

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Impact on London Universities and Higher Education Students

The addition of 941 student beds in Southwark will directly alleviate housing stress for students attending major central London universities, including King’s College London, London South Bank University, and University of the Arts London. By providing modern, dedicated accommodation within commuting distance of major campuses, Devonshire Place is expected to absorb a portion of the student population currently competing for private rented sector (PRS) flats in South London. This concentrated supply should offer safer, purpose-managed living quarters for international and domestic scholars alike.

Impact on the Local Southwark Community and Rented Housing Market

For residents within the London Borough of Southwark, the delivery of 200 dedicated affordable homes provides much-needed residential capacity amidst London’s ongoing housing shortage. Furthermore, shifting nearly 1,000 students into dedicated PBSA blocks helps ease pressure on local family housing stock in Southwark, which has frequently been converted into Houses in Multiple Occupation (HMOs). The surrounding local economy along Old Kent Road stands to gain from increased footfall and sustained consumer spending generated by the incoming student population and residents.

Impact on UK Real Estate Investment and Overseas Capital Flows

From a commercial property perspective, the successful execution of a £238 million debt facility by a Middle Eastern developer signals continued international appetite for UK real estate assets. This development is predicted to act as a precedent for further cross-border joint ventures, encouraging Middle Eastern and international capital funds to target UK urban regeneration zones through structured debt and joint development models rather than traditional standing asset purchases.