Cain International (Cain), a privately held investment firm led by Jonathan Goldstein, together with PGIM Real Estate have agreed a development loan of £191 mln (€225 mln) to finance Union, Vita Group’s new 500,000 sq ft (46,450 m2) BTR proposition in Manchester, UK.
Located within a wider £1 bn redevelopment site known as St John’s, Union will create 1,676 beds, comprising of 1,545 private rented beds and 131 affordable beds over two tower blocks with a mix of studios, duos, trios and quad apartments. Tower 1 is expected to complete in Spring 2024 and Tower 2 is expected to complete in the Summer of 2025. Cain will provide £148 mln in financing with PGIM Real Estate providing an additional £43 mln.
The St John’s master plan will offer 320 hotel bedrooms, 560,000 sq ft of office space, 240,000 sq ft of retail and 13 acres of public realm upon completion in 2025.
The scheme will be delivered by developer Renaker.
Mark Stott, Vita Group CEO said: 'We’re delighted to partner with Cain International and PGIM Real Estate on this outstanding scheme. Union has been designed to mobilise the next generation of young professionals creating a product which provides the perfect blend of amenity, service, and space in a sought-after location and at a price which is accessible. Having financial partners Cain and PGIM Real Estate onboard with this project ensures Vita can focus on future developments and growth opportunities.'
This loan builds on the expansion of Cain’s debt offering to key regional cities in the UK, now totaling more than £320 mln with Vita, Cain funding also includes schemes in Warwick, Coventry and Cardiff having first partnered with the group in 2020.
Graham Keable, principal at Cain International, said: 'We have been steadily increasing our exposure to key UK markets in recent years, as we find the fundamentals supporting higher education and BTR in UK cities to be highly attractive for our strategy. To that end, we are really pleased to sign our first deal in Manchester. Manchester is the UK’s second largest city by population and home to its largest financial centre outside of London, with a number of internationally popular universities that feed into the talent pool that choose to stay in the region after graduation. Further, we are very happy to continue our strong relationship with Vita Group, a best-in-class operator in PBSA and BTR.'
Andrew Macland, head of European Debt at PGIM Real Estate said: 'Manchester has been a core market for us over the last 10 years, and we are pleased to be developing in St Johns, a scheme we have seen through the planning stage, since acquisition from ITV in 2012. Union represents an exciting opportunity for any financier – a prime location mixed with an exciting product delivered by a business with a proven track record for creating stand-out BTR and PBSA.'