Cain International is to provide Vita Group with a £53 million loan to finance the development of a 496-bed PBSA scheme in Coventry, in the UK’s West Midlands bringing to over £170 million the amount that Cain has lent the student housing specialist.
PGIM Real Estate will be providing the junior debt facility in this instance.
The loan is the third that privately owned investment firm Cain, has provided for Vita Group’s PBSA developments. Cain first partnered Vita in 2020, providing £80 million for a 780-bed scheme near the University of Warwick and £40.3 million to finance development of a 401-bed scheme in Cardiff, Wales.
Fully consented scheme to complete in 2023
The Coventry scheme is expected to complete in 2023. It has been awarded full planning consent and will include a gym, cinema, study rooms, gaming stations and a large social hub for holding events. Studios will range in size between 172 sq ft (16 sq m) and 344 sq ft (32 sq m).
Services provided include breakfast, laundry and parcel services, social events, contents insurance, bi-weekly room cleaning, free bike use and a concierge service.
The project is a 10-minute walk from Coventry University and 20 minutes by bus from The University of Warwick.
Alderly Edge-based Vita Group is the developer and operator of Vita Student and Vita Living. It has established and the brand has developed and operates 6,391 student beds in the UK, as of April 2021.
“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 prioritise safe, supportive and well-managed accommodation in the years ahead,” said Cain International principal Graham Keable.