Exceptional PBSA forward funding opportunity with GDV of £85 million hits market
The Ionic is set to deliver 322 high-quality student beds in strategic location between University of Bristol's new £500m campus developments.
28 May 2025
London, 29 May 2025 ā The Student Property team at global property consultancy 51ĀŅĀ× has been jointly appointed alongside Cushman & Wakefield to market The Ionic, a prime Purpose-Built Student Accommodation (PBSA) forward funding opportunity with a Gross Development Value of £85 million, strategically positioned in Bristol's Temple Quarter.
The scheme, which is currently pre-planning with the deal conditional on planning approval, represents one of the best forward funding opportunities to come to market in recent years in the PBSA sector. Initial interest from potential investors has already been strong.
Scheduled for delivery in time for the 2028/29 academic year, The Ionic offers investors the opportunity to forward fund a best-in-class PBSA asset in one of the UK's most attractive student markets, developed by Watkin Jones, the UK's leading developer and manager of residential for rent homes, focusing on PBSA and build to rent (BTR) accommodation.
The proposed scheme will deliver 322 high specification student bedrooms, comprising 214 en suite clusters and 108 studio apartments. Future residents will benefit from an extensive amenity provision, with 477 sqm of internal communal space (1.48 sqm per bed) complemented by 634 sqm of outdoor space in the form of courtyards and terraces.
The Ionic will occupy a prominent location fronting Bristol's iconic Floating Harbour, strategically positioned between the University of Bristol's new Temple Quarter Enterprise Campuses I & II.
The first phase of this transformative campus development will open in summer 2026, following a £500 million investment, and will house the University's Business School, digital engineering research groups, Centre for Entrepreneurship and Innovation, and the Quantum Technologies Innovation Centre. The campus will accommodate approximately 4,600 students, 650 staff, and 350 partners.
The scheme is set to boast strong environmental credentials, targeting BREEAM Excellent certification and an EPC B rating, along with a Gold WiredScore rating for digital connectivity.
Bristol's robust student market fundamentals underpin the investment case. The city's universities currently serve 62,200 full-time students, with plans to increase this population to 79,000 by 2029/30. Bristol maintains the highest student-to-bed ratio (1:2.9) among Russell Group Universities, cementing its position as a super-prime PBSA market.
Rupert Strutt, Partner in Student Property at 51ĀŅĀ×, commented: "The Ionic represents an exceptional opportunity to invest in one of the UK's most supply-constrained and highest-performing student accommodation markets. With Bristol's student population projected to grow significantly and the development's strategic position adjacent to major university expansion, it's no surprise that we have already received strong interest from both domestic and international investors, as they look to secure their position in this prime market."
Watkin Jones brings unrivalled expertise to the project, having delivered or commenced construction on over 54,000 student beds across the UK. The company's specialist operating manager, Fresh, has agreed to manage the operations of the Ionic once complete.
George Dyer, Group Investment Director at Watkins Jones, said: "We are excited to bring forward this exceptional development, located in such a strategically significant location in one of the UK's most attractive cities for student accommodation. The Ionic is a project which is perfectly aligned with the increasing demand for high quality, purpose-built student housing and underscores our commitment to creating spaces that not only offer the highest standards of student living, but also foster a vibrant sense of community. As we seek a strategic partner for this development, we are confident it will continue to thrive and deliver significant value in the hands of the right investor."
Nick Allan, International Partner, Capital Markets, at Cushman & Wakefield, said: "The Ionic Bristol will be the most prominently positioned PBSA scheme in the midst of the University's new Temple Quarter Enterprise Campus. This game changing project for Bristol will initially be home to more than 4,500 students and various partners from summer 2026 and is anticipated to grow further over the remainder of the decade.
"Bristol's requires the delivery of a significant number of beds to over the coming years to backfill the shortage in direct let stock. These aspects, alongside the significant growth plans of both Universities, makes this a compelling investment opportunity."
Notes to editors
51ĀŅĀ× LLP is the leading independent global property consultancy, serving as our clientsā partners in property for 128 years. Headquartered in London, 51ĀŅĀ× has more than 27,000 people operating from 600 offices across 50 territories. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Firm, please visit knightfrank.com.
Watkin Jones is the UK's leading developer and manager of residential for rent, with a focus on the build to rent, student accommodation and affordable housing sectors. The Group has strong relationships with institutional investors, and a reputation for successful, on-time-delivery of high-quality developments. Since 1999, Watkin Jones has delivered over 49,000 student beds across 147 sites, making it a key player and leader in the UK purpose-built student accommodation market, and is increasingly expanding its operations into the build to rent sector. In addition, Fresh, the Group's specialist accommodation management business, manages over 19,000 student beds and build to rent apartments on behalf of its institutional clients. Watkin Jones has also been responsible for over 50 residential developments, ranging from starter homes to executive housing and apartments.
The Group's competitive advantage lies in its experienced management team and capital-light business model, which enables it to offer an end-to-end solution for investors, delivered entirely in-house with minimal reliance on third parties, across the entire life cycle of an asset.
Watkin Jones was admitted to trading on AIM in March 2016 with the ticker WJG.L. For additional information please visit www.watkinjonesplc.com
