In a significant move reflecting its commitment to the UK market, global real estate investment manager Cain has announced the initiation of a dedicated purpose-built student accommodation (PBSA) strategy in London. This strategy aims to deliver an impressive 2,000 beds across the capital, marking an essential expansion within its growing pan-European living platform. The first investment under this new strategy is a fully consented 353-bed development located on the Greenwich Peninsula, featuring an 18-storey tower, which will be realised in collaboration with RG Real Estate (RGRE).
Scheduled for completion before the onset of the 2029/2030 academic year, this scheme is designed with an array of amenities aimed at enhancing the student living experience. Moreover, it is set to target leading BREEAM and other building performance certifications, ensuring high standards in sustainability and design. London, being the world’s largest student city, continues to attract both homegrown and international students eager for world-class education and long-term career opportunities, thus creating a vibrant market for high-quality student accommodation.
The Strategic Importance of Greenwich
Located within the Greenwich Peninsula, this site is part of one of London’s most extensive mixed-use regeneration districts, where plans are underway to deliver over 17,000 new homes alongside retail, office, hotel, leisure, and cultural spaces. The area, which is already home to The O2, boasts strong connectivity to key financial hubs such as Canary Wharf, the City of London, and London City Airport. Furthermore, it offers access to five of the top 100 global universities, making it an attractive location for students.
Arvi Luoma, Chief Investment Officer at Cain, expressed that Greenwich serves as a compelling starting point for Cain’s ambitions in London, noting its excellent connectivity to leading global universities combined with proximity to major employment centres like Canary Wharf. He highlighted the pressing issue of a severe shortage of high-quality student accommodation in London, asserting that well-located and amenity-rich developments such as this will continue to draw sustained demand.
Partnership with RG Real Estate
In this endeavour, Cain has partnered with RG Real Estate, which was established in 2023 as the development arm of RG Group, focusing on residential and living sector schemes across the UK. The collaboration involves RGRE refining the project design to not only enhance the student experience but also strengthen regulatory compliance and optimise the value of the development by creating additional rooms.
Oliver Cummings, Managing Director and Head of PBSA at Cain, remarked on the importance of this partnership, stating that they are already working with RG Group on two other projects located in Leeds and Bristol. The positive relationship established with RGRE has been instrumental in successfully securing amendments to the planning consent, which improve design and compliance while increasing the project’s overall value through additional bedrooms.
Investment and Growth Plans
Cain’s PBSA platform currently represents approximately €1.2 billion in gross development value, comprising around 4,000 beds situated across key university markets, including Bristol, Leeds, Manchester, and Liverpool. Recently, the firm announced a joint venture with Global Student Accommodation (GSA) in Rome as part of its strategy to scale its operations across Europe’s premier university markets, with an ambitious goal to grow its platform to 10,000 beds over the next five years.
Moreover, Cain has deployed over £1 billion in construction financing within the PBSA sector across the UK and Spain, prior to the divestment of its credit business to Eldridge Capital Management. This financial commitment underscores Cain’s strategic focus on the PBSA sector and its ambition to build a prime portfolio in London.
Nick Hayes, Managing Director of RGRE, expressed satisfaction in collaborating with Cain, emphasising their expertise in transforming complex projects into secure, predictable investments. He stated that this project showcases the best of what RGRE has to offer and reflects their commitment to creating value through proactive development management while fostering long-term relationships with leading capital partners.