North West student accommodation schemes to benefit from £500m funding
Global real estate investment firm, Cain International, has completed a £500m PBSA (purpose-built student accommodation) forward-funding deal that will support the delivery of 2,389 beds across major UK university cities, including Liverpool and Manchester.
All five schemes have already secured planning consent.
The transaction sees Israeli insurance group Menora Mivtachim Group invest in Cain’s existing UK PBSA platform with developer Fusion Group, alongside the addition of a new development partner, Olympian Homes. The transaction marks Menora’s first direct investment into a UK PBSA strategy.
With Fusion, Cain, founded by US businessman and owner of Chelsea FC, Todd Boehly, will be delivering three schemes in Liverpool, Nottingham and Manchester.
In Liverpool, the partners are delivering 420 beds across a mix of room types, with around 5,000 sq ft of amenity space expected.
With delivery in time for the 2025/26 academic year, the scheme is located at the edge of the Knowledge & Georgian Quarter and an eight minute walk from the city centre.
In Deansgate, Manchester, Cain and Fusion will deliver 509 student beds in a 28-storey building in time located in the city centre for the 2026/27 academic year.
The building will also have around 7,000 sq ft of amenities, including private and shared study spaces, a basketball court, wellness suites, a postal store and a coffee shop.
Financing was provided by an affiliate of Apollo Global Management, Inc.
Together with Olympian, Cain will also deliver two new PBSA schemes in Leeds and York.
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.”
Daniel Harris, senior MD and head of European investment at Cain International, said: “A transaction of this scale not only underlies our confidence in the fundamentals of the sector, but the strength of our relationships and expertise of our partners.
“We’re delighted to be working with Menora on its first UK PBSA transaction, and with Apollo as a lending partner, both adding great depth to Cain’s platform.”
Nir Moroz, CIO Menora Mivtachim, said: “The international appeal of the U.K.’s universities, combined with a supply-and-demand imbalance and opportunity to partner with reputable developers, made this forward funding deal a compelling opportunity to enter the UK PBSA market. We look forward to further building our relationship with Cain as these assets reach completion.”
Mark Slatter, chairman of Olympian, said: “To secure backing from leading investors is a testament to the strong fundamentals of the student market. We look forward to working with Cain, its investment partners and the local councils as we deliver these landmark developments.”
Cain International was advised by Cushman & Wakefield, Colliers, Herbert Smith Freehills and Allen & Overy. Olympian Homes was advised by JLL, Menora was advised by Greenberg Traurig, Apollo was advised by Gibson Dunn, and Fusion was advised by Mishcon De Reya.
