The property, called Grosvenor House in Drury Lane, is leased to the London School of Economics for student accommodation and is now set to be modernised.
The JV partners are also looking at opportunities to build purpose-built schemes in the London Boroughs of Lambeth, Haringey, Brent and Harrow, targeting young professionals.
Vicky Savage, Executive Development Director, Network Housing Group, said: “Together with Stanhope we can offer a really high quality approach to the whole development process; from site acquisition, design progression, delivery and management.”
David Camp, chief executive of Stanhope, said: “We are focused on establishing how Stanhope can build upon its expertise and experience to play a long term role in delivering reasonably priced rental homes in London. Our framework agreement with Network will enable us to combine our skills to provide high quality product and service in the private residential rental sector.”