Cain International has completed a £500m PBSA forward-funding deal that will support the delivery of 2,389 beds across major U.K. university cities.
All five schemes have already secured planning consent.
The transaction sees Israeli insurance group Menora Mivtachim Group invest in Cain’s existing U.K. 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 U.K. PBSA strategy.
With Olympian, Cain will deliver two new PBSA schemes in the key university cities of Leeds and York. In Leeds, the 45-storey Cirrus Point 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. In York, in time for the 2025/26 academic year, Rialto House will provide 275 beds a ten-minute walk from the city centre and a seven-minute bus ride from the University of York. Both schemes will offer high-quality amenities including a gym, yoga studio, cinema, games room, co-working, group dining and shared outdoor spaces. RG Group and GMI have been appointed as contractors for the Leeds and York schemes respectively.
With Fusion, Cain will be delivering a further three schemes in Liverpool, Nottingham and Manchester. In Liverpool, the partners are delivering 420 beds across a mix of room types, with c. 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 Knowledge & Georgian Quarter and an eight-minute walk from the city centre.
In Nottingham, the scheme is located in the city centre just outside of Hockley and Lace Market. Expected to be complete by Q3 2025, Cain and Fusion will deliver a nine-storey asset in multiple connected blocks, consisting of 552 student rooms. It will also have 9,000 sq. ft. of amenity spaces. Finally, in Deansgate in 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 c. 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
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 U.K.’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 U.K. 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 U.K. 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. ‘
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