Cain International has agreed an €89m (£80m) development loan with Vita Group and an established real estate investment manager to finance the development of a 780-unit student accommodation scheme near the University of Warwick in Coventry.
The 169,000ft² Vita Student development received planning consent in November 2019 and began construction in October. It will be ready for occupancy in the 2022-2023 academic year and will be delivered in three phases, with the first 563 units anticipated to reach practical completion in September 2022 and the remaining units to be delivered in December 2022 and January 2023. The final scheme will comprise 73% studios, 7% ‘twodios’ (two independent student bedrooms with direct access to a shared kitchen and communal facilities) and 20% cluster apartments.
The development will be located a five-minute walk from the University of Warwick, which is counted in the top 10 UK universities and the top 100 globally and which has more than 21,000 full-time students and 9,000 international students. It will benefit from close proximity to the adjacent Cannon Park Shopping Centre and easy access to Coventry city centre via public transport.
Upon completion, the development will provide high-specification amenity space including a gym, cinema, games room and common rooms. Breakfast will be provided and residents can request and manage further services, such as laundry and parcel services, through an app that will also allow residents to have sight of all upcoming events. Additional inclusive services include a social events calendar, contents insurance, bi-weekly room cleaning, free bike use and a concierge service.
Graham Keable, Principal at Cain International, said: “Working alongside strong partners that are providing high-quality solutions to address market demand is core to how we approach underwriting a loan. Despite the turbulence caused by the pandemic, the purpose-built student accommodation sector has demonstrated its resilience, and we are confident that its strong fundamentals will see outperformance and investment volumes continuing to increase in the months ahead. Demand remains particularly robust from international students and we expect this to continue as the cap on growth in student numbers is removed, with the highest quality student accommodation schemes set to benefit most.”