Cain International has agreed a €61.4m (£53m) loan with Vita Group to finance the development of a 496-bed student accommodation scheme located in Coventry, UK. PGIM Real Estate will be providing the junior debt facility. This loan marks the third time that Cain has worked with Vita Group on a purpose-built student accommodation (PBSA) asset development. Since first partnering with Vita in 2020, Cain has provided over €196.8m (£170m) to the group following the agreement of an€92.6m (£80m) loan for a 780-bed scheme near the University of Warwick and a €46.6m (£40.3m) loan to finance the development of a 401-bed student accommodation scheme located in Cardiff, Wales.
Expected to complete in 2023, the 496-bed scheme has achieved full planning permission and will include a gym, cinema, study rooms, gaming stations and a large social hub for holding events. Studios will range in size between 172ft² and 344ft². 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. Construction is being delivered by Bowmer & Kirkland.
Graham Keable, Principal at Cain International, said: “We have built an increasingly strong relationship with Vita Group since we first partnered with them in 2020, and this most recent development loan is a sign of both our confidence in them as a sponsor and operator in PBSA, but also our long-term belief in the asset class. While demand from international students for UK universities has witnessed some temporary disruption due to the coronavirus pandemic, this is set to rebound as this development reaches completion and will remain strong as both parents and students prioritize safe, supportive and well-managed accommodation in the years ahead. We look forward to further establishing our track record in this space with Vita Group.”