Fusion Group, one of the UK's largest privately-owned student accommodation developers and operators, has received planning approval from Southampton City Council for a purpose-built student accommodation development at the Portswood Centre retail parade site. The project, targeting BREEAM Outstanding certification, signals strong institutional appetite for sustainable PBSA assets in university cities with undersupplied markets.
The approved scheme comprises two buildings of five and six storeys, delivering 507 student bedrooms alongside dedicated amenity spaces including private study areas and fitness facilities. Designed by Corstorphine and Wright, the development will also provide 831 m² of flexible commercial space and approximately 724 m² of public realm, with enhanced streetscape improvements along Portswood Road.
Located within a 15-minute walk of St Denys train station and Southampton Common, the asset sits in close proximity to the University of Southampton's Highfield campus, which hosts over 20,000 students. Southampton's student accommodation sector remains undersupplied relative to demand, with current bed spaces failing to meet the growing international student population, a factor likely to attract build-to-rent and institutional investors seeking stable, inflation-linked income streams.
The scheme targets a 29% improvement over Building Regulations Part L, positioning it favourably for ESG-focused capital seeking green-certified assets. Fusion Group's commitment to BREEAM Outstanding accreditation aligns with growing investor demands for energy-efficient buildings amid rising operational costs and regulatory pressures.
Julian Evans, Development Director at Fusion Group, said: "As a developer and operator of exceptional living assets, Fusion's focus is on creating places that support the health and well-being of residents and the community as a whole. Our Southampton scheme is a leading example of this. We're looking forward to continuing to work with the community, our partners and the council to deliver on our vision."
The approval forms part of Fusion Group's forward development pipeline, which aims to deliver 10,000 beds across the living sector by 2030, resulting in a minimum of 12,000 operational beds under management. The group's development strategy reflects broader market confidence in the UK student accommodation sector, which continues to attract significant capital despite broader real estate headwinds.
People mentioned:
- Julian Evans, Development Director, Fusion Group
Companies mentioned:
- Fusion Group, student accommodation developer and operator
- Corstorphine and Wright, architects
- Southampton City Council, local planning authority
