Fusion Group, one of the UK's largest privately-owned living sector developers and operators, has exchanged contracts to acquire Dockside Canada Water's Plot B from Art-Invest Real Estate as part of its joint venture with global alternative investment manager Cheyne Capital. The development will deliver 742 purpose-built student accommodation beds and 79 C3 affordable homes, responding to London's critical shortage of student housing that continues to place mounting pressure on traditional residential markets.
Dockside Canada Water is a new 139,354 m² urban quarter located at the gateway to British Land's 2.2-hectare new town centre in Canada Water, representing the most significant regeneration project in London over the past five decades. The acquisition forms part of Fusion's forward development pipeline that provides the potential to deliver 9,000 beds across the living sector by 2030, resulting in a minimum of 12,000 operational beds under management. Art-Invest Real Estate will retain an interest in Dockside's Plot B following the transaction, which is expected to be completed later in December 2025.
This marks the eighth development partnership between Fusion and Cheyne, and their third scheme in London. The collaboration follows their two projects in Brent Cross Town, the first of which welcomed students in September, with the second transaction completing in October 2025. For investors and developers, this deal exemplifies how purpose-built student accommodation can unlock sites that might otherwise face viability challenges in the current economic and regulatory environment, demonstrating innovative approaches to mixed-use developments that serve both students and local communities whilst maintaining commercial appeal.
Richard Pilkington, CEO at Fusion Group, said: "Whilst we continue to see market challenges in delivering Living Sector Assets in the current economic and regulatory environment, we have found a way with Art-Invest to unlock this opportunity at Canada Water, a hugely exciting and developing area of London, through our work with our partners, Cheyne Capital. Delivering both PBSA beds and affordable homes in partnership with Cheyne supports the continuing growth of our business and, in particular, our development and operational capabilities in London, which is a key area of growth for us."
Hamish Gordon, Director in Cheyne Capital's Real Estate Group, said: "The student housing market continues to be driven by considerable demand, with an increasing appetite for well-located and high-quality developments across the UK and particularly in London. Our team has deep experience creating high-quality facilities for students throughout Europe, and we are looking forward to continuing our partnership with Fusion to deliver another premium scheme to benefit both students and the broader community in Canada Water."
Ali Abbas, Managing Director at Art-Invest Real Estate UK, commented: "Our strategic decision to diversify our Dockside office-led masterplan has enabled us to bolster the growing educational living quarter in Canada Water and create an invaluable incubator for talent and business as the new destination continues to evolve. I am delighted to bring on board Fusion and Cheyne and conclude this sale whilst maintaining an interest. Fusion, as the developer-operator of the PBSA scheme, was a natural decision given our strong cultural alignment and their exceptional capability in the UK student accommodation sector."
People mentioned:
- Richard Pilkington, CEO, Fusion Group
- Hamish Gordon, Director, Cheyne Capital Real Estate Group
- Ali Abbas, Managing Director, Art-Invest Real Estate UK
Companies mentioned:
- Fusion Group, UK living sector developer and operator
- Cheyne Capital, global alternative investment manager
- Art-Invest Real Estate, European investor and developer
- British Land, regeneration developer
