Cain International has agreed a £1.5bn joint venture with student developer Fusion.
The joint venture has assets under exclusivity in Portsmouth, Liverpool, Manchester, Nottingham, Birmingham and London, totalling 3,000 beds.
The pair aim to grow this to 7,500-10,000 beds through forward funding and purchases with Fusion and other developers, creating a portfolio valued at £1.5bn.
The deal marks Cain’s entrance into student, following experience in real estate debt, having provided £200m to develop 1,700 beds in Coventry, Cardiff and Warwick.
Nigel Henry, co-founder of Fusion Student, described the deal as “an important milestone” for the company, helping it to double the size of its portfolio. Henry said: “We will target leading university cities that attract high levels of international students.”
Richard Pilkington (pictured), senior managing director and head of European real estate, said: “The PBSA sector has proven robust over the course of the pandemic, and with UCAS applications at an all-time high last year, this is only set to grow further as the value of a premium education retains its appeal.
“However, with increasingly stringent ESG criteria and expectations from students, we believe there is a significant opportunity to bring more high-quality products to an increasingly bifurcated and undersupplied market.”
Harris & Associates advised Fusion and Cushman & Wakefield advised Cain International.
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