Colliers Advises Cain International on £150 Million Student Funding
Posted by Colliers on 25th September 2023 -
The Operational Capital Markets team at Colliers has advised Cain International on a £150m forward funding transaction with Olympian Homes as part of a wider £500 million forward funding for five new purpose-built student accommodation (PBSA) schemes.
The team advised on the properties in York and Leeds, where Cain will deliver the 45-storey Cirrus Point, the tallest PBSA building in the world which will provide 660 beds across 255,000 sq ft and is due for completion in 2026. Rialto House in York will open in time for the 2025/26 academic year and provide 275 beds. Both schemes will offer amenities including a gym, yoga studio, coworking and shared outdoor spaces.
The transaction will be the Menora Mivtachim Group’s first direct into a UL PBSA strategy. The Israeli insurance group will invest into Cain’s existing UK PBSA platform with developer Fusion Group, and its pipeline with Olympian Homes.
George Adams, Associate Director at Colliers, commented: “It’s hard to escape the headlines about the chronic lack of student accommodation in the UK. It’s been fantastic to work with Cain International to secure the forward funding for much needed beds in popular university cities. The PBSA sector continues to attract investment from a range of investors who are looking to secure long term income against the backdrop of growing student population - UCAS predicts new higher education applicants will reach 1 million by 2030.”
Richard Pilkington, senior MD and head of European Real Estate at Cain International, said: “This is an important milestone for our beds strategy and further demonstrates our confidence in the sector’s attractive fundamentals and potential for growth with reputable developers. With over 350,000 beds needed nationally to meet the expected demand across the UK’s largest university cities, we believe there is significant opportunity in this market and look forward to delivering and expanding on our strategy through new and existing partnerships.”
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