The tallest student accommodation building in the world is set to be constructed in Leeds, as part of a £500m funding deal.
London based Cain International has completed the half-billion pound forward funding deal with Israeli insurance group Menora Mivtachim Group that will support five schemes across university cities including Leeds, York, Manchester, Nottingham and Liverpool. The deal sees Menora invest in Cain’s existing purpose built student accommodation platform with developer Fusion Group, alongside new development partner Olympian Homes.
It will lead to the creation of 2,389 beds in the five schemes, which have already secured planning permission, With Olympian, Cain will deliver two new student housing schemes in York and in Leeds, where it will build Cirrus Point, a 45-storey skyscraper with 660 beds across 255,000sqft, which the firm said will make it the tallest building of its kind in the world and the tallest building in Leeds.
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Cirrus Point is being built by RG Group and is due for completion in 2026. In York, in time for the 2025/26 academic year, Rialto House is being constructed by GMI and 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 residents amenities including a gym, yoga studio, cinema, games room, co-working space, group dining areas and shared outdoor spaces. With Fusion, Cain will be delivering a further three schemes in Liverpool, Nottingham and Manchester, delivering 420 beds, 552 student rooms and 509 student bed respectively. 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 海角视频’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.”
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Nir Moroz, CIO Menora Mivtachim, said: “The international appeal of the 海角视频’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 海角视频 PBSA market. We look forward to further building our relationship with Cain as these assets reach completion.”
Mark Slatter chairman of Olympian, added: “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 LLP, Apollo was advised by Gibson Dunn, and Fusion was advised by Mishcon De Reya.