A £500 million forward-funding deal to construct five student accommodation schemes in the UK has been agreed – with one set to be the tallest of its kind in the world.
The transaction, between investment firm Cain International and Israeli insurance group Menora Mivtachim Group, will support delivery of 2,389 Purpose-Built Student Accommodation (PBSA) bed spaces in university cities across the country.
Richard Pilkington, senior MD and head of European real estate at Cain, said the deal demonstrates Cain’s “confidence in the sector’s attractive fundamentals and potential for growth”.
RG Group and GMI have been appointed as the contractors (in Leeds and York).
Property developers Fusion Group and Olympian Homes are also involved.
The 45-storey Cirrus Point scheme will provide 660 beds across 255,000 sq ft, making it the tallest PBSA building in the world and the tallest building in Leeds.
It is due for completion in 2026.
Rialto House will provide 275 beds close to the city centre, in time for the 2025/26 academic year.
Both schemes will have a gym, yoga studio, cinema, games room, co-working, group dining and shared outdoor spaces.
The team will build a 420-bed scheme with 5,000 sq ft of amenity space near the Knowledge & Georgian Quarter, in time for the 2025/26 academic year.
A nine-storey build in multiple connected blocks will be constructed in the city centre, consisting of 552 student rooms and 9,000 sq ft of amenity space.
Expected completion is Q3 2025.
Contractors will deliver 509 student beds in a 28-storey building in Deansgate, in time for the 2026/27 academic year.
The building will also have 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 private equity company Apollo Global Management.
Cain was advised by Cushman & Wakefield, Colliers, Herbert Smith Freehills and Allen & Overy.
Olympian was advised by JLL; Menora was advised by Greenberg Traurig LLP; Apollo was advised by Gibson Dunn; and Fusion was advised by Mishcon De Reya.
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