Cain completes €577m PBSA deal with backing from Menora

Privately held investment firm Cain International has completed a £500 mln (€577 mln) PBSA forward-funding deal that will support the delivery of 2,389 beds across major UK university cities.

All five schemes have already secured planning consent.
The transaction sees Israeli insurance group Menora Mivtachim Group invest in Cain’s existing UK 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 UK 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 ft2, 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 5,000 ft2 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 ft2 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 7,000 ft2 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.
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 UK’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.'
Nir Moroz, CIO Menora Mivtachim, said: 'The international appeal of the UK’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 UK PBSA market. We look forward to further building our relationship with Cain as these assets reach completion.'

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.


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