Vita secures £91m loan for 576-bed Manchester PBSA
Cain International has provided funding for the developer’s House of Social at First Street.
Vita has secured £91.5m for the Manchester student development, which will rise to 14 storeys, provide 576 bedrooms, and boast a 14,000 sq ft ground floor food hall.
Mick Slater, chief financial officer for Vita Group, said: “Closing this agreement with Cain enables us to bring the House of Social vision to life for the first time in Manchester.
“Centred around a destination food hall, House of Social will service Manchester’s undersupply of student accommodation [and is] designed for Manchester’s more independently-minded students, who traditionally find themselves in HMOs and private rentals on the outskirts of the city.”
The deal marks the sixth time Vita and Cain have linked up. To date, the partnership has supported the delivery of over 4,000 beds from Manchester to Madrid.
The last time the developer and funder joined forces in Manchester was in 2021 when Cain provided £191m to fund two co-living towers in Manchester’s St John’s district.
Graham Keable, managing director at Cain International, said: “We believe Cain’s distinctive advantage lies in its partnership model, and we are delighted to extend our relationship with Vita as they introduce a new dimension of student living to the market.
“Cain’s long-standing experience in this sector, through its credit and equity practices, bolsters our confidence in the stability of UK university cities and we eagerly anticipate the positive impact this project will have on the community and the future of student accommodation.”
Cain has also provided the funding for two more North West student schemes for developer Fusion Group – a 420-bed scheme in Liverpool and a 509-bed tower in Manchester.
In 2023, Cain arranged more than £425m of loans within the alternative resi sector, which includes BTR, PBSA, and co-living.
Students who opt for ‘HMOs and private rentals on the outskirts of the city’ do so in part for financial reason and/or for more cultural reasons around the idea of living the student house share life. Its wishful thinking to believe this development will address this. The supply of much needed PBSA is welcome but your developments are on the luxury side of PBSA, probs the most expensive. This isn’t for the average domestic student or even international students from modest backgrounds. I do support it however, there is a surely a market for it and those need should be met to avoid externalities , I just think you should advertise it more accurately.
By Anonymous
Absolutely love the look of this one. No one else seems bothered by it.
By Anonymous
Can someone explain how Vita have managed to find private funding for this, without having to borrow it from GMCA? I thought big city centre schemes from established developers are only viable if the taxpayer helps out?
By Anonymous