The loan has been provided to Fosfel Apollo Limited, a JV between private investors including Melrose Capital and Hurlington Capital, a property investment and development company focused on the delivery of residential and mixed-use schemes across London and the Southeast.

The development will comprise 248 private rooms, 81 affordable rooms and 155 studio apartments.

30 of the affordable rooms will be classified as affordable rent, with 12 shared ownership apartments.

Permission has also been granted for 17,940 sq ft of retail and light industrial space across the ground and first floors.

The borrower has appointed Allford Hall Monaghan Morris, a well-regarded and award-winning London Architect, to design the development.

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The scheme is located within 15-minute walk of both Surrey Quays and South Bermondsey train stations, and residents will be within a 20-minute journey to London Bridge.

James Nunn, fund manager at Octopus Real Estate, said: “Demand for student housing continues to far outstrip supply, particularly in London.

“At Octopus Real Estate we’re pleased to be playing our part in helping meet this demand, by providing tailored and specialist funding for transitional assets.”

Jamie Feldman, CEO of Hurlington Capital, said: “We’re delighted to have worked with Octopus Real Estate on this transaction.

“There is an acute need for purpose-built student accommodation in London, and we’re excited to deliver this project, which will provide hundreds of students with housing in an up-and-coming and well-located area.”